Mediaconglomerate PPF proposes action to prevent MFE from acquiring control over ProSiebenSat
Tension is ramping up in the power play for ProSiebenSat.1, as two major contenders jockey for control. In a twisted turn of events, PPF Group, the second-largest shareholder and a Czech financial investor, is taking a defensive stance against the Italian media company Media for Europe (MFE) - the grand troupe of Silvio Berlusconi's heirs.
PPF is preparing a hostile, though enticing, offer to the free float shareholders, with the intention of wrestling control away from MFE. The move, worth a hefty €7 per share in cash, aims to boost PPF's stake in the prized German commercial broadcaster from around 15% to nearly 30%. This maneuver would require a mandatory public offer, as the threshold is at 30%.
Investors, naturally, are excited by the opportunity to cash in on this juicy offer, resulting in a massive 17% surge in ProSiebenSat.1's stock price. In stark contrast, MFE's earlier bid offered €4.48 per share in cash, accompanied by a measly 0.4 shares of their firm, which landed them the title of ProSiebenSat.1's largest shareholder, with a hefty 30.14% stake. Players in the media sphere have been sharp-eyed to the underwhelming nature of MFE's offer, as it failed to impress in light of the broadcaster's current stock price.
The brass at ProSiebenSat.1, led by the unrelenting CEO Bert Habets, is wholeheartedly embracing PPF's moves, issuing a press release to acknowledge its gratitude for PPF's commitment to the broadcaster and their support for the Executive Board’s strategy of digital transformation. At this point, shareholders who seek a quick sale would undoubtedly prefer PPF's offer as a "better alternative" over MFE's bid.
Stoessel, the sharp-witted Chief Investment Officer of PPF, is eager to put their support for the company's management on record, stating without reservation that he firmly believes they are steering the right course in the company's attempt to conquer the digital frontier. Turbulent times call for unlikely alliances, it seems, as PPF and ProSiebenSat.1 march forth under the same banner.
PPF's offer will be presented during the acceptance period for MFE's offer, positioning PPF as a formidable competitor under the German Securities Acquisition and Takeover Act. As if that weren’t enough, PPF is eyeing a "significantly more active role" on the supervisory board post-takeover. The ultimate goal is to bring ProSiebenSat.1’s supervisory board up to speed with MFE, enabling the management to implement its digital-focused strategy without interference.
At the start of April, the media group shook things up by announcing that Maria Kyriacou would assume command over the supervisory board's helm following her nomination. Kyriacou would replace Andreas Wiele, who announced his intention to step down from the supervisory board after the annual general meeting.
Two weeks after the announcement of Wiele's departure, ProSiebenSat.1 dropped a bombshell by locking in CEO Bert Habets for another three years with an extended contract. Many have interpreted this move as a snub against MFE, considering Wiele's frequent opposition to MFE’s suggestions and criticisms regarding management and strategy. The nine-member supervisory board of ProSiebenSat.1 includes four representatives from MFE and two from PPF, with the latter eager to inflate their presence in the upcoming power struggle for the broadcaster. It remains to be seen who will seize control of the German commercial broadcaster and steer its course toward a resurgent future.
In the ongoing power struggle for ProSiebenSat.1, PPF Group, a significant player in finance and investing, is making moves to elevate its business stake by offering free float shareholders an enticing €7 per share, aiming to boost its control from 15% to nearly 30%. This aggressive maneuver, requiring a mandatory public offer due to the 30% threshold, has intrigued investors and put PPF in competition under the German Securities Acquisition and Takeover Act.
The CEO of ProSiebenSat.1, Bert Habets, and his management team have expressed support for PPF's moves, favoring their offer as a potential "better alternative" for shareholders seeking quick sales. As a result, the stage is set for a busy acceptance period, with PPF challenging Media for Europe's (MFE) earlier bid and positioning itself for a more active role on the supervisory board post-takeover.
