Vivendi clarifies revised Mediaset offer
July 27, 2016
By Colin Mann
French media group Vivendi has clarified that its CEO Arnaud de Puyfontaine, in a letter dated June 21st, informed Mediaset Management of significant differences in the analysis of its subsidiary, Mediaset Premium’s results, for which the two companies are currently in negotiations.
In addition, the Group made a proposal to Mediaset on July 25th to come to a new agreement, under different terms, so as to pursue discussions.
Vivendi confirmed its desire to build a major strategic alliance with Mediaset and Mediaset Premium.
Subsequently, following a request from the AMF (Autorité des marchés financiers) France’s stock market regulator and in accordance with market regulation, Vivendi confirmed that on July 25th 2016 it sent a “constructive” letter to Mediaset relating to the Mediaset Premium acquisition, proposing an alternative structure:
- A 3.5 per cent share in Vivendi in exchange for:
- a 20 per cent share in Mediaset Premium and a 3.5 per cent in Mediaset;
- and convertible bonds into Mediaset shares to be issued by Mediaset to Vivendi (annual instalments) for the remaining amount.
According to Vivendi, such a structure would fully align the interests of the respective groups. Acquiring a direct stake in Mediaset Premium will enable Vivendi to bring its know-how in pay-TV, while keeping intact the synergies between pay and free TV activities within the Mediaset group.
“This proposal represents a more ambitious project, in line with the development of the television market and the strategy developed by our main competitors. It also reinforces Vivendi’s commitment to building a major strategic alliance with Mediaset and Mediaset Premium,” said Vivendi.