BERLIN (Reuters) -German broadcaster ProSiebenSat.1 said it has begun the process of selling two e-commerce businesses, a key demand from top investor MFE-MediaForEurope, but reiterated an appeal to shareholders to oppose a complete break-up.
MFE, which holds nearly 30% of ProSieben’s shares, wants the company to shed all of its e-commerce and dating businesses in order to focus on television, in a split that could eventually lead to a buyout approach for the German group’s TV business.
ProSieben shareholders are scheduled to vote on MFE’s plan at the German company’s annual general meeting (AGM) on April 30, with one investor – Amber Capital – telling Reuters it would back the strategy shift proposed by MFE.
ProSieben’s management has fiercely opposed MFE’s break-up proposals, which CEO Bert Habets said late on Wednesday “would restrict our options and create no value for all shareholders”.
“We have improved the profitability of our e-commerce businesses and initiated a sale process with banks for two of our largest assets, Verivox and Flaconi, to maximise value,” Habets added in a statement published online.
Flaconi is an online perfume retailer and Verivox is a price comparison website.
The DWS lobby group, which represents private shareholders, urged investors to oppose MFE’s plans at the AGM, saying in a statement that the proposals would be detrimental to ProSieben.
“It looks as if the major investor MFE wants to create a kind of bad bank in which companies are brought in in order to sell them quickly,” said DSW Vice President Daniela Bergdolt.
“However, this approach will depress the prices of the investments and destroy value for all shareholders,” she added.
MFE was not immediately available to comment on Thursday.
ProSieben shares were up 0.9% at 0853 GMT.
(Reporting by Klaus Lauer and Elvira Pollina; writing by Rachel More and Madeline Chambers; editing by Jason Neely and Alexander Smith)
