Page 20 - BNE_magazine_11_2019

20 I Companies & Markets bne November 2019
bne:Deal
Czech billionaire Kretinsky acquired German TV and radio company ProSieben
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The holding company Czech Media Invest, co-owned by Czech entrepreneur Daniel Kretinsky, bought a 4.07% stake in the German television and radio company ProSiebenSat.1 Media on the public market, CMI announced in its press release on October 18, adding that this is the first step in a new strategy of buying minority shares in European media companies.
“This investment is a result of the mandate from our shareholders to ensure further growth within the European media landscape,” said Member of the Board of Directors and Financial Director of the CMI group Branislav Miskovic.
"We expect ProSieben to be both a long-term and a strategic investment within our media portfolio. We are convinced that strong linear European television stations which are able to swiftly react to market development have good economic potential also in the long-run and we do not share the scepticism held by the majority of the market as seen through the decline in the valuations of several European television groups,” Miskovic added.
CMI appreciates the powerful brand and strong position of ProSieben on the large German market, as well as its ability to generate solid operational cash flows supported by management’s commitment towards discipline over operational costs and in the domain of M&A.
Together with Slovak investor Patric Tkac, Kretinsky made an unsuccessful attempt to take over the German retail group Metro through their investment group EP Global Commerce (EPGC).
Even though EPGC stated it regretted that the talks had failed, “[it] continues to believe that the offer represents a unique opportunity for all shareholders to exit at an attractive price and in EPGC’s view includes a significant premium to the current fundamental value of METRO. EPGC also continues to believe that the company itself would significantly benefit from a simplified shareholder structure under clear leadership with a long-term strategic view to help METRO successfully complete the necessary transformation in the challenging market environment,” their statement read.
Czech PPF reportedly buys CME’s assets in CEE
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PPF Group, a holding controlled by Central Europe’s richest man, Petr Kellner, reportedly will acquire Central European Media Enterprises (CME), which holds some of the biggest TV channels in Bulgaria, Romania, the Czech Republic, Slovakia and Slovenia, the Bulgarian news outlet Capital.bg reported, quoting three unnamed sources.
In Bulgaria, Kellner has attempted to acquire Nova TV, but local authorities have banned the deal.
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According to Capital.bg, PPF should gain the control over CME after the company decided to reassess its presence in CEE.
In July 2017, CME divested its leading Croatian and Slovenian TV stations to United Group's Slovenia Broadband for €230mn in cash to pay down debt. In January this year, United Group sold Total TV in Croatia.