The supervisory board of ProSiebenSat.1 has put on hold a potential agreement that would have granted US private equity firm General Atlantic a minority stake in the German broadcaster, according to a report by Reuters.
The report cites unnamed sources familiar with the matter as revealing that the firm’s supervisory board withheld approval for the deal, and instead instructed management to renegotiate under revised terms before reconsidering, sources revealed.
General Atlantic is currently a co-investor in ProSieben’s internet businesses, which include: Verivox (price comparison platform); Flaconi (perfume e-retailer); and ParshipMeet Group (online dating platform).
ProSieben has been working to sell these assets, but General Atlantic holds blocking rights, creating a hurdle to any potential transaction.
Earlier this month, ProSieben announced plans to acquire General Atlantic’s minority stakes in ParshipMeet and NuCom Group (the holding company for Verivox and Flaconi). In exchange, ProSieben planned to issue a mandatory convertible bond as payment.
A key point of concern was the structure of a “contingent” capital increase, which would allow ProSieben to issue up to 23.3 million new shares (10% of its share capital). This would dilute existing shareholders, including MFE-MediaForEurope (MFEB.MI), which holds nearly 30% of ProSieben — just below the threshold that would trigger a mandatory takeover bid under German law.
MFE, controlled by Italy’s Berlusconi family, has reportedly secured a €3.4bn financing package, fuelling speculation of a potential ProSieben takeover bid later this year. The company aims to consolidate European broadcasters under an ad-funded model.
Neither General Atlantic nor MFE provided comments on the matter.
ProSiebenSat.1 has stated that it is still reviewing aspects of the deal and has not yet reached a final decision. If revised terms are agreed upon, the acquisition could clear the way for the sale of Verivox and Flaconi, unlocking value for the broadcaster.
