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The television group, founded by Silvio Berlusconi, has launched a 1.3 billion euro purchase bid for German broadcaster Prosiebensat.1 as part of a long-standing push to build a pan-European media empire.
MediaForeurope, which is the majority owned by the Italian Prime Minister’s family, is the largest shareholder of Prosieben, and has made an offer worth around 5.7 euros to the German company, said someone familiar with the matter. This will value the broadcaster’s shares at around 1.3 billion euros.
The MFE, which did not disclose the value of the bid, said the cash and inventory offer coincided with the average trading price of Prosieben over the past three months, the lowest level required by German regulators.
Prosieben said it expects the three-month average stock price to be 5.75 euros.
Prosieben’s share price rose 1.3% to 6.53 euros on Wednesday after MFE, including Financial Times, reported that MFE was scheduled to open bids.
The Berlusconi family’s media group has long seen the procenity, weighing the acquisitions through 2006.
MFE owns a 29% stake in Prosieben, which airs in Germany, Austria and Switzerland, and hosts shows such as Germany’s next top model.
MFE said it said it had “participated in an irrevocable business with existing shareholders.” This will increase the MFE’s interest in Prosiven to more than 30%, requiring that under German regulations, the Italian group offer to purchase the remaining shareholders of the company.
The MFE said it “decided to increase its interest in the prosieben further, and as a result, it has decided to increase its long-term investment and commitment to the prosieben in order to contribute more positively to the development of the prosieben’s strategic direction.”
Prosieben said the executive team and the board of supervisors will “consider the offer carefully after the offer document is published,” and will then respond.
If the MFE offer is accepted by other prosyben shareholders, the Italian group (which also owns Italian and Spanish television channels) will provide a foothold for a large German-speaking market.
They will also recognize the ambitions of MFE chief executive Pier Silvio Berlusconi, the son of the late Italian prime minister who set up the company to take over Prosieben.
Last week, German broadcasters announced the disposal of two assets beyond their core entertainment business (subsidiaries of price comparison sites Verivox and Wellness Platform Arban Sports Club).
These were steps that MFE promoted, even if they denied that the buyback was ready.
