Dutch media company Telegraaf Media Group (TMG) (TLGNc.AS) has sold its stake in Germany’s ProSiebenSat.1 (PSMGn.DE). With this, it becomes the latest shareholder to take advantage of the recent share conversion of the free-to-air broadcaster.
Telegraaf said it had placed 13.13 million shares in ProSieben, representing a 6 percent stake, at 30 euros a share and raised net proceeds of about 391 million euros ($513 million).
Last month, ProSieben converted its non-voting preference shares into more liquid voting common shares that make it easier for investors to sell their stock. Private equity firms KKR (KKR.N) and Permira PERM.UL placed 11 percent of ProSieben at 30.67 euros a share.
The company used the opportunity to divest a stake not anymore regarded as strategic, the finance chief of TMG, which publishes “De Telegraaf”, the largest circulation daily newspaper in the Netherlands.
“TMG has a clear ambition to be the Dutch media company of the future and TMG’s holding in ProSiebenSat.1 as such is non-core,” Fred Arp said in a statement.
Shares in TMG were up 1.6 percent at 13.1 euros at 1055 GMT, off an earlier high of 13.795 euros.
“We expect a large part of the proceeds to be returned to shareholders,” said Johan van den Hooven, analyst at SNS Securities. “For years the stake in ProSiebenSat1 reflected a large chunk of TMG’s total valuation, recently around 70 percent. The sale will unlock this value,” he added.
“It looks like ProSiebenSat.1 could fight with Metro (MEOG.DE) and Brenntag (BNRGn.DE) for DAX membership next year,” said Silke Schluensen from brokerage Close Brothers Seydler.