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.
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