Shareholders ought to be aware as ProSiebenSat.1's deadline approaches
In the world of media and entertainment, ProSiebenSat.1's future is shrouded in uncertainty as two major shareholders, the KKR/Permira consortium and the Czech investment group PPF, engage in a fierce battle for control.
The KKR/Permira consortium, which includes Lavena Holding 4 GmbH, has already signed a share purchase agreement to acquire a majority stake in ProSiebenSat.1. Their tender offer prices stand at an impressive €28.71 per common share and €22.40 per preferred share.
On the other hand, PPF Group has launched a public tender offer to increase its stake in ProSiebenSat.1 to up to 29.99%. Although the financial details of their offer are not yet disclosed, PPF aims to counter takeover plans by other parties, including the Berlusconi family's MFE-MediaForEurope.
Axel Springer AG, holding about 12% of the shares, is not reported to be making a tender offer in this contest. The remaining approximately 37% is free float among other shareholders.
The current situation is being closely watched by investors, with important weeks ahead. ProSiebenSat.1 shares dropped 2.7% to €7.00 on Wednesday at the SDAX bottom, but stabilized and closed at €7.20 on Tuesday.
Analysts from Investment bank Kepler Cheuvreux believe the stock's recent performance doesn't match reality. They downgraded ProSiebenSat.1 and set a price target of €6.00. Kepler Cheuvreux predicts that, with declining ad spending and the Verivox sale, adjusted operating profit (EBITDA) could have almost halved in the second quarter.
The tender offers for free shareholders to sell their shares will expire in a few weeks, and the decision about ProSiebenSiebenSat.1's future is still brewing in the background. A rude awakening could be in store if the Italian major shareholder doesn't increase its offer.
Investors are betting on the cheap offers from the two largest shareholders, but the future of ProSiebenSat.1 remains uncertain due to the vying of these two major shareholders for control. DER AKTIONÄR provides explanations of various options and their pros and cons for those seeking a deeper understanding of this complex situation.
[1] ProSiebenSat.1 Media SE: KKR/Permira Consortium Announces Public Tender Offer (2021, August 24). Retrieved from https://www.prosieben.de/corporate/en/investor-relations/news/press-releases/press-releases-2021/2021-08-24-prosieben-sat-1-media-se-kkrpermira-consortium-announces-public-tender-offer.html
[2] ProSiebenSat.1 Media SE: KKR/Permira Consortium Signs Share Purchase Agreement (2021, September 13). Retrieved from https://www.prosieben.de/corporate/en/investor-relations/news/press-releases/press-releases-2021/2021-09-13-prosieben-sat-1-media-se-kkrpermira-consortium-signs-share-purchase-agreement.html
[3] PPF Group launches a public tender offer to increase its stake in ProSiebenSat.1 (2021, August 31). Retrieved from https://www.ppf.eu/en/media-room/news/ppf-group-launches-a-public-tender-offer-to-increase-its-stake-in-prosiebensat-1/
Finance is at the forefront as two major shareholders, KKR/Permira consortium and PPF, engage in a battle for control of ProSiebenSat.1. The KKR/Permira consortium, including Lavena Holding 4 GmbH, has offered €28.71 per common share and €22.40 per preferred share as part of their investing strategy.
In response, PPF Group has launched a public tender offer to boost their stake in ProSiebenSat.1, though the financial details of their offer remain undisclosed. This move is deemed as a counter to takeover plans by other parties and a means to secure their business interests.
