Private equity firm General Atlantic offloads its ProSieben shareholding to PPF Group.
ProSiebenSat.1, the Bavarian broadcasting group, is at the centre of a bidding war between two potential investors: MFE and PPF. The competing offers will run until Wednesday.
PPF, a Czech investor, has made a straightforward cash offer of €7.00 per share for General Atlantic's approximately 2.4% stake in ProSiebenSat.1. On the other hand, MFE's offer was a combination of €4.48 in cash and 1.3 MFE A-shares valued around €2.69 each. While MFE's offer was numerically higher, it included shares that could dilute existing shareholders and trigger cross-border regulatory scrutiny.
General Atlantic, a private equity firm, chose PPF's all-cash offer to preserve control and avoid shareholder dilution, favouring a low-risk, straightforward deal. The decision aligns with General Atlantic's strategy, as the company had originally acquired its stake at around €6.44 per share.
The transaction details were confirmed by two sources familiar with the transaction. With this sale, PPF now holds 15.8% of ProSiebenSat.1, and could potentially aim to collect at least 20% of the company's shares.
Meanwhile, MFE is offering for all shares, while PPF aims to increase its stake to a maximum of 29.99%. It's important to note that MFE has already secured 37.6% so far.
The closing price for ProSiebenSat.1 shares on Tuesday was 7.87 euros, slightly below MFE's offer price but above PPF's €7 cash offer. Despite the slightly lower price, General Atlantic appears to have prioritised certainty and strategic influence over a higher but partly stock-based valuation.
This sale follows General Atlantic's rejection of MFE's takeover bid for ProSiebenSat.1. Both General Atlantic and PPF originally invested in NuCom, ProSiebenSat.1's online businesses, with a 30% stake. During the sale of NuCom's comparison portal Verivox in the spring, General Atlantic exchanged its stake for 5.9 million ProSiebenSat.1 shares, at a calculated entry price of 6.44 euros each.
As the bidding war continues, ProSiebenSat.1 shareholders will be closely watching the developments, hoping for the best outcome for the company.
In light of the bidding war between potential investors MFE and PPF for ProSiebenSat.1, General Atlantic, a private equity firm, chose an all-cash offer from PPF to preserve control and avoid shareholder dilution, favoring a lower yet more straightforward deal in the finance sector. With this sale, PPF now holds 15.8% of ProSiebenSat.1, hinting at potential future financial ambitions for a larger stake in the company.
