Competitor PPF Group relinquishes pursuits in the bidding war for ProSiebenSat.1 media company
The takeover battle for ProSiebenSat.1, the German broadcaster, has reached a turning point. The Czech investment group, PPF, has announced it will no longer pursue its role as a strategic investor in the company.
On August 1st, PPF IM Ltd made a "best and final" public acquisition cash offer of €7.00 per share. Despite tendering 36,539,628 shares, which is nearly 16% of ProSiebenSat.1's outstanding share capital, the offer did not receive sufficient support from shareholders.
PPF's decision to withdraw comes after the Berlusconi-owned Italian group, MediaForEurope (MFE), made an offer for ProSiebenSat.1's shares. With MFE already holding over 43% of voting rights, they are expected to command a simple majority at ProSiebenSat.1's AGMs.
The future of ProSiebenSat.1's ownership and management is now uncertain, with MFE potentially taking a more prominent role. PPF, however, has not withdrawn from the German market entirely. They will carefully evaluate future investment opportunities in ProSiebenSat.1, considering Germany's ProSieben market to be of "central importance."
PPF's offer triggered an amended offer by MediaForEurope (MFE) in the takeover battle for ProSiebenSat.1. Following the settlement of its own offer on August 21st, PPF decided to tender its shares in ProSiebenSat.1 to MFE. The seller of the 36,539,628 ProSiebenSat.1 shares at the settlement on August 21 was the PPF Group.
This announcement marks the end of PPF's efforts to secure ownership of the German broadcaster. The takeover battle for ProSiebenSat.1 may have a new direction, as MediaForEurope (MFE) is expected to gain control. PPF, however, remains committed to creating added value for local stakeholders in ProSiebenSat.1.
