KKR, Permira plan European TV consolidation

The two buyout groups have seen off rival bidders to take a control stake in ProSieben-Sat.1, a German broadcaster, which ultimately they plan to merge with SBS Broadcasting, a European TV rival and portfolio business.

KKR and Permira, two buyout groups, are set to launch a €5.9 billion takeover for ProSieben-Sat.1 Media, Germany’s largest TV group, after signing the deal last night to acquire a majority stake in the broadcaster.

The two firms are paying €3.1 billion for a 50.5 percent stake from German Media Partners, the consortium that bought the broadcaster from the stricken Kirch Media three years ago.

Saban Capital Group leads the vendor consortium with a 26 percent share; followed by Bain Capital Partners, Hellman & Friedman, Thomas H. Lee Partners, all on 18.6 percent;  Providence Equity with 11.2 percent, Quadrangle with 5.9 percent and Alpine Funds on 1.1 percent.

Upon completion of the deal the new owners will hold approximately 88 percent of the voting common shares and approximately 13 percent of the non-voting
preference shares in ProSiebenSat.1 Media with approximately 50.5 percent of the registered share capital.

KKR and Permira intend then to launch a voluntary public takeover for the remainder. The offer price per share will be equal to the weighted average share price during the last three months prior to the announcement of the takeover offer and worth a further €2.8 billion approximately.

Götz Mäuser, partner and head of media sector at Permira, said in a statement that after completion of all regulatory proceedings and the voluntary takeover offer, a possible business combination with the broadcasting group SBS Broadcasting could be considered.

SBS Broadcasting is majority-owned by KKR and Permira and is present in Belgium, the Netherlands and Luxembourg as well as in Scandinavia and eastern Europe.