ProSiebenSat.1 Sells Northern European TV and Radio Activities to Discovery Communications
Munich, December 14, 2012. The ProSiebenSat.1
Group is selling its TV and radio business activities in Northern
Europe to Discovery Communications. In so doing, the ProSiebenSat.1
Group will further increase its focus on the German-speaking
Broadcasting and Digital & Adjacent segments while accelerating
its own transformation into a digital entertainment powerhouse. The
assets being sold encompass all TV and radio activities in Norway,
Sweden, Finland and Denmark. The ProSiebenSat.1 Group's production
business in Northern Europe (Red Arrow Entertainment Group) is not
part of the transaction. The transaction is subject to merger
control clearance and is expected to be consummated in the first
quarter of 2013.
The enterprise value underlying the transaction is EUR 1.325
billion. In recent years, the ProSiebenSat.1 broadcast group in
Northern Europe has shown a very positive development for a number
of reasons, including significant investment in new channels. The
recurring EBITDA to be deconsolidated amounts to EUR 134.4 million
for these operations (LTM, as of September 30, 2012).
Thomas Ebeling, CEO of ProSiebenSat.1 Media AG, notes: "With
Discovery Communications we have found a great new strategic owner,
and a truly global media leader, for our Northern European
companies. I'm very happy with this result. I would like to take
this opportunity to thank all our colleagues in the North, and
particularly our CEO in these territories, Henrik Ravn, for their
outstanding performance in the past years. I wish them every
success as part of the Discovery family."
David Zaslav, president and CEO of Discovery Communications: "SBS
Nordic has a fully distributed portfolio of dual revenue stream
networks with a terrific management team that will expand
Discovery's footprint across the Nordic region, which includes some
of the most well-penetrated and stable TV markets in the
world."
Thomas Ebeling: "For ProSiebenSat.1, the sale at this time is an
important refocusing step on our path to becoming a digital
entertainment powerhouse. By achieving an attractive price we have
created a great deal of added value for all shareholders. In the
future, we will focus even more strongly than before on combining
our German-language TV and digital activities, since that is where
our greatest potential for growth and synergies lies. We will be
significantly accelerating the growth of our Digital & Adjacent
segment: both organically and through attractive bolt-on
acquisitions at reasonable prices. In so doing, we will focus in
particular on companies that complement our portfolio and for which
we can create critical mass using our Group's media power. By
expanding and reinforcing our German-speaking Broadcasting and
Digital & Adjacent segments, we are making our company fit for
the future."
By selling its Nordic activities, the ProSiebenSat.1 Group is
clearly focusing on the increasing digitization of the media
landscape and the resulting growth opportunities. The Group's
Eastern European business will be classified as a non-core asset,
the value of which is to be optimized.
ProSiebenSat.1 Media AG intends to use a partial amount of EUR 500
million of the proceeds for a partial prepayment of term debt under
the syndicated facilities agreement of the ProSiebenSat.1 Group and
the remainder of the proceeds for reinvestments in the business of
the group. Hence a significant portion of the operating cash flow
will be available for other purposes. This will increase the
company's capacity for dividend distributions to its
shareholders.
In coordination with the company's majority shareholder Lavena, a
holding company which is jointly controlled by investment funds of
KKR and Permira, the company intends to propose to the coming
shareholders' meeting a total dividend distribution in the order of
EUR 1.2 billion (approx. EUR 5.60 per share) provided the
transaction will be successfully consummated and the business
performance is developing in line with expectations. In 2012, the
company made dividend payments to its shareholders in the total
amount of approx. EUR 245 million (EUR 1.17 per preference share
and EUR 1.15 per common share).
Also after such a dividend distribution the leverage ratio of the
ProSiebenSat.1 group will remain within the previously communicated
target range of 1.5 to 2.5 times net debt to recurring
EBITDA.
Furthermore, the company intends to propose to the coming
shareholders' meeting a conversion of its non-voting preference
shares into voting common shares. In connection with the
conversion, which shall be effected without requirement for the
preference shareholders to pay any premium, all common shares would
be admitted to trading at the stock exchange. The company's
majority shareholder has informed the company of its intention to
support this measure in the case of a successful consummation of
the transaction. In addition to a resolution of the shareholders
meeting at which the company's majority shareholder controls the
required majority of votes, the conversion of preference shares
into common shares requires a special resolution of preference
shareholders with a majority of 75 percent of the votes cast.
About Discovery Communications
Discovery Communications (Nasdaq: DISCA, DISCB, DISCK) is the
world's #1 nonfiction media company reaching more than 1.8 billion
cumulative subscribers in 217 countries and territories. Discovery
is dedicated to satisfying curiosity through 153 worldwide
television networks, led by Discovery Channel, TLC, Animal Planet,
Science and Investigation Discovery, as well as U.S. joint venture
networks OWN: Oprah Winfrey Network, The Hub and 3net, the first
24-hour 3D network. Discovery also is a leading provider of
educational products and services to schools and owns and operates
a diversified portfolio of digital media services, including
Revision3.
Contacts:
Julian Geist
Corporate Spokesman
ProSiebenSat.1 Media AG
Medienallee 7
D-85774 Unterföhring
Tel. +49 [89] 95 07-11 51
Fax +49 [89] 95 07-911 51
E-Mail:
Julian.Geist@ProSiebenSat1.com
Stefanie Prinz
Head of Corporate and Financial Communications
ProSiebenSat.1 Media AG
Medienallee 7
D-85774 Unterföhring
Tel. +49 [89] 95 07-11 99
Fax +49 [89] 95 07-911 99
E-Mail:
Stefanie.Prinz@ProSiebenSat1.com
Press release online:
www.ProSiebenSat1.com