PRAGUE (Reuters) -Czech investment group PPF on Monday offered to buy shares in ProSiebenSat.1 to lift its stake in the media group to close to 30%, countering plans by the Berlusconi family’s MFE-MediaForEurope to tighten its grip over the firm.
PPF, the largest Czech investment group owned by the family of founder Petr Kellner, said in a statement it aims to achieve a stake of up to 29.99% through the acquisition of no-par value shares of ProSiebenSat.1 at 7 euros ($7.85) per share.
PPF currently holds a stake of 14.94% in ProSiebenSat.1, making it the second-biggest shareholder after Italy’s MFE-MediaForEurope, which hiked its stake to 30.14% following a takeover offer in March.
MFE had no immediate comment. It said last week at the start of the acceptance period of its offer for ProSiebenSat.1 shares that it did not expect to get a majority in the media group.
Shares in ProSiebenSat.1 were up 17.4% at 7 euros in Frankfurt morning trade, matching the PPF offer, while MFE shares were also up.
Following the partial offer, PPF will seek more ProSiebenSat.1’s supervisory board seats, it said.
Didier Stoessel, Chief Investment Officer of PPF Group said this would allow it “to more actively support the ProSiebenSat.1 management with our experience, namely in the digital revitalization of linear TV business models”.
The offer represents a premium of 17% over the last closing price on Friday and a 21% premium compared with MFE’s offer of 4.48 euros per share, PPF said in a statement.
ProSiebenSat.1’s executive board welcomed the offer, the German media company said in a statement.
“It will provide shareholders, who prefer to monetize their investment short-term, with a better all-cash alternative to the public takeover offer published by MFE,” it added.
PPF’s offer may put the Czech group, which has been developing its media through the CME group of central and east European television channels and streaming services, near MFE’s holding in ProSiebenSat.1, but it will not cross the 30% that would mandate an offer to all shareholders.
MFE, which has already crossed the 30% threshold which normally triggers a 100% takeover offer by German law, will have the option to buy additional shares from the market at the end of its offer in June.
“In the long term we need to understand whether the strategic vision has points in common or of divergence with that of MFE,” Andrea Randone, analyst at Italian brokerage firm Intermonte said of PPF’s move.
($1 = 0.8913 euros)
(Reporting by Isabel Demetz and Alexander Huebner; Additional reporting by Elvira Pollina and Jan Lopatka; Editing by Friederike Heine and Ludwig Burger)
