Private equity firm General Atlantic is in discussions to acquire a minority stake in German broadcaster ProSiebenSat.1, as the company looks to restructure ownership of its digital assets, according to a report by Reuters.
The report cites unnamed sources familiar with the matter as revealing that the potential deal was reviewed by ProSieben’s supervisory board in a meeting on Sunday.
General Atlantic currently holds minority stakes in ProSieben’s internet portfolio, which includes price comparison platform Verivox, perfume e-retailer Flaconi, and online dating business ParshipMeet Group. ProSieben has been working on a plan to buy out General Atlantic’s stakes in ParshipMeet and in NuCom Group, the entity that owns Verivox and Flaconi, as part of a broader strategy to streamline asset ownership ahead of potential divestitures.
ProSieben is considering financing the buyout of General Atlantic’s holdings through a mandatory convertible bond or possibly treasury shares, eliminating hurdles to the planned sales of Verivox and Flaconi – which General Atlantic currently has the power to block.
One of the options under review is a contingent capital increase, which would allow ProSieben to issue up to 23.3 million shares (10% of its share capital) without requiring a shareholder vote, relying solely on supervisory board approval.
If executed, this option would dilute existing shareholders, including MFE-MediaForEurope, the broadcaster’s largest investor with a 30% stake. MFE, controlled by Italy’s Berlusconi family, has been positioning itself for a potential takeover of ProSieben, securing a €3.4bn financing package to fund an acquisition bid later this year.
MFE’s financing plan also includes €2.1bn earmarked for refinancing ProSieben’s debt, should it cross the 50% voting threshold that triggers a change-of-control clause, giving creditors the option to call in debt repayments.
ProSiebenSat.1, which currently has a market capitalisation of €1.4bn, and General Atlantic both declined to comment on the potential transaction.
