Large investors support MFE’s takeover bid for Mediaset España by taking stakes of around 9%
The improvement made by Media For Europe (MFE) to the economic conditions of the takeover bid launched by Mediaset España has attracted the support of large national and international investors.
The new conditions of the offer, which represent a shareholder premium of around 40%, have recently led many large financial institutions and investment firms to acquire significant stakes in Mediaset España, totalling around 9% of the company, which shows their support for the operation and the economic advantages of accepting the offer, according to financial sources.
Among the entities that have reported stakes in Mediaset España are DWS Investment GMBH, which owns 2.95%; activist investor Reade Griffith, founder of Polygon, who has disclosed a 1.022% stake; Norges Bank, which owns 1%; Citigroup has disclosed a 1.032% stake; and Zurcher Kantonalbank has disclosed a 1.194% stake.
The most recent investment has been that of Joseph Oughourlian, chairman of Prisa, who has revealed a 1.36% stake in Mediaset España, combining the shares he controls directly with the 1.08% he has taken with the fund he manages, Amber Global.
In parallel, several investment banks have also supported the bid and have advised going for the takeover bid through positive reports. This is the case of JP Morgan, Bankinter and GVC, among others, which warn that if Mediaset España shareholders do not accept the offer, they run the risk of remaining minority investors in an illiquid asset.
The Board of Directors of Mediaset España has also recommended “unanimously” to issue a favourable opinion on the takeover bid and invites to accept MFE’s bid after the improvement of the offer. Mediaset España shareholders have until 1 July to accept the offer.
Improved offer
MFE announced on 6 June that it had improved its takeover bid for Mediaset España by raising its cash offer to 4.32 euros for every two Mediaset España shares. That is, 2.16 euros per share. Initially, the offer amounted to 1.86 euros per share.
The consideration, of a mixed nature, is complemented by the exchange of nine newly issued class A MFE shares for every two Mediaset España shares targeted by the offer, the 44.3% that it does not control.
Given the values at the launch of the offer, the shareholder premium (adding the dividend to be distributed by MFE) represents about 40%. On this dividend, the board of MFE agreed to propose, for approval by the shareholders’ meeting on 29 June, the distribution of a dividend of EUR 0.05 per MFE share.
Thus, Mediaset España shareholders who participate in the takeover bid or squeeze-out will receive, in addition to the cash amount, the equivalent of an additional 0.225 euros per Mediaset share for their exchanged MFE shares, in addition to the 4.5 shares of the Italian group.
Pier Silvio Berlusconi, MFE’s CEO, recently defended the deal, saying it will “increase the resources and size” for the group’s development “with the aim of achieving further audiovisual growth”.
MFE’s goal is to create a large European audiovisual group to be a major player in the entertainment sector. In addition, MFE believes that the new group will have cost and revenue synergies of at least EUR 55 million per year from 2025.
And it has announced that it will submit a dividend policy to a forthcoming Shareholders’ Meeting that will involve the distribution of at least 50% of the annual results among its shareholders (which will include Mediaset España shareholders who accept the offer).
