The Berlusconi family’s MediaForEurope (MFE) has upped its bid for Germany’s ProSiebenSat.1 Media.
MFE’s voluntary public takeover offer has risen to €4.48 per share in cash and 1.3 newly-issued MFE A shares for each ProSiebenSat.1 share. According to ProSieben, this values its shares at €8.15, based on the MFE-A stock’s price on the Euronext Milans Stock Exchange on Friday.
The offer, in turn, prices ProSieben at €2.01B, based on the three-month share price average up to March 25, when MFE launched its original voluntary public takeover offer. Furthermore, it’s a 22% premium on the closing price of ProSieben shares this past Friday.
MFE is already a key shareholder in ProSieben, which has faced the challenges of digitizing a traditional media business over recent years, and in March made its initial lowball offer, which was effectively as low as it could legally offer. ProSieben’s board called the offer “inadequate from a financial perspective” and claimed banker Morgan Stanley agreed. MFE wants to build a European media giant capable of facing streaming rivals on an even keel, but has until now refused to increase its bid.
PPF IM’s rival offer, which ProSieben management appear more comfortable with, remains unchanged at €7 a share in cash. MFE noted that shareholders who have already accepted the PFF IM deal can “withdraw” should they want.
“The combination of the businesses, if and when achievable, under the creation of a combined group and the consolidation of P7’s assets, offers key strategic advantages and enables significant value initiatives for the combined group, mainly in the areas of advertising, tech and data,” MFE told its shareholders in a statement.
“We welcome the announced increase of the offer consideration, which underscores MFE’s long-term investment and continued commitment to ProSiebenSat.1,” said Bert Habets, Group CEO of ProSiebenSat.1 Media.
“We will thoroughly assess the increased offer as well as value creation potentials mentioned in the press release of MFE. We support the cooperations across the media industry and a pan-European project, working closely together also with MFE, and look forward to continuing joint discussions.”
