ProSieben shares slide 10% in wake of MFE bid

German giant ProSiebenSat.1 has seen its shares fall more by more than 10% in the wake of MediaForEurope confirming it would be making an offer to take over the broadcaster. 

MFE has been in an ongoing battle to take ownership of ProSiebenSat.1 for more than five years, looking to create an operation based out of Italy, Spain and Germany that can compete with streamers. 

To date, the German operator has resisted approaches but earlier this week the Berlusconi family-operated company - which already owns a majority stake in ProSiebenSat.1 - confirmed it had agreed a deal to buy further shares, taking its stake above 30%. 

That triggers a mandatory takeover offer, with a minimum price per share that must be an average of its price over the past three months. 

MFE expects to offer around €5.70 (£4.75) per share, while ProSiebenSat.1’s shares had closed on Wednesday at €6.50 each. They stood at €5.83 as of press time. 

The offer is subject to local regulatory approval and analysts suggest take-up will be low, but will enable MFE to steadily increase its stake and influence on the German operator, described by JP Morgan analysts as “creeping control”. 

ProSiebenSat.1 said it would review MFE’s offer. 

The pricing of the takeover is set to be formally approved by German regulator Bafin next week, with a tended expected in April.  

Once the takeover offer has expired, MFE will be able to buy additional shares without repeating its formal offer to all shareholders. 

MFE is led by Pier Silvio Berlusconi, son of the late Italian prime minister Silvio Berlusconi.  

The company was created in 2021 after Berlusconi rebranded his Mediaset operation as MediaForEurope and overhauled its structure. Mediaset had first invested in ProSiebenSat.1 in 2019. 

Berlusconi said earlier this week that it “is time to switch gear” to enable ProSiebenSat.1 to expand, adding that he wanted to create a “cross-media, pan-European group that acts as an alternative to the digital giants and succeeds in the ambitious goal of being able to compete and grow.” 

He continued: “We believe that ProSiebenSat.1 needs a strong shareholder that can provide expertise and experience in the industry, making an active contribution to its growth journey.” 

ProSiebenSat.1 is valued at around €1.5bn, with shares falling from almost €50 apiece in 2015 to less than €6 today. 

The company is led by chief exec Bert Habets and operates numerous channels in Germay, Austria and Switzerland, including ProSieben, Kabel Eins and ProSieben Maxx.  

It carries shows such as The Masked Singer and Germany’s Next Top Model, and also operates streamer Joyn and the Seven.One production division, which is behind Married at First Sight.