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Investing.com -- MFE MEDIAFOREUROPE (BIT:MFEB) has raised its takeover offer for German broadcaster ProSiebenSat.1, valuing the company at approximately $2.4 billion.
Shares in ProSiebenSat.1 (ETR:PSMGn) popped more than 10% in European trading.
The Dutch-based media group, controlled by Italy’s Berlusconi family, is now offering ProSiebenSat.1 shareholders €4.48 in cash plus 1.3 newly issued MFE A shares for each share they hold.
Based on the average share price over the three months leading up to March 25—when MFE first announced its takeover plans—the new bid values ProSiebenSat.1 at €2.01 billion ($2.36 billion), representing a 22% premium to Friday’s closing price.
The improved offer follows an earlier proposal that was turned down by ProSiebenSat.1’s executive board in May. That bid had included the same cash component but only 0.4 MFE A shares per ProSiebenSat.1 share, valuing the company at €1.34 billion.
In a parallel move, Czech investment group PPF, the second-largest shareholder in ProSiebenSat.1, made an all-cash offer in May to raise its stake to 29.99%, offering €7 per share. ProSieben’s board took a neutral stance, calling the bid a sign of commitment but saying it undervalued the company.
ProSiebenSat.1 has until August 13 to respond to the new offer, unless the deadline is extended, MFE said.
“This is an industrial proposal, not a financial one. We’re not aiming for total control but rather the flexibility to steer the company with a shared strategic vision,” said MFE CEO Pier Silvio Berlusconi.
MFE estimates that the proposed deal could lift its annual EBIT by as much as €419 million by the fourth year, with upfront costs and investments expected to reach up to €145 million.