KKR, Permira Selling 16.6% Stake in Broadcaster ProSiebenSat.1

Jan 17, 2014 6:06 am ET

Jan. 16 (Bloomberg) -- KKR & Co. and Permira Advisers LLP are selling 36.3 million shares in German broadcaster ProSiebenSat.1 Media AG, divesting a stake valued at 1.3 billion euros ($1.8 billion).

Bank of America Corp. and Deutsche Bank AG are placing the 16.6 percent stake on behalf of holding company Lavena Holding 1 GmbH, according to an e-mailed statement. The shares are being offered at 34 euros to market price, said a person familiar with the matter who requested anonymity before the sale is completed. The sale, which closes at 7 a.m. London time tomorrow, has enough demand for all the shares offered at 35 euros, according to a message sent to investors.

KKR and Permira, which last sold a stake in ProSiebenSat.1 in November, join private equity firms and European governments in paring their holdings as investors return to the region’s markets on the promise of an economic recovery.

Shares of Munich-based ProSiebenSat.1 rose 2 percent to 35 euros at the close of trading in Frankfurt today.

France sold a 451 million euro stake in Airbus Group NV to institutions this week and Vattenfall AB of Sweden raised 1.03 billion zloty ($337 million) from the sale of its entire 19 percent stake in Enea SA, Poland’s fourth-biggest power utility.

In almost five years under the leadership of Chief Executive Officer Thomas Ebeling, Prosiebensat.1 shares have surged to 35 euros, almost 40 times the 88 cents traded at on Feb. 27, 2009. Ebeling has focused on the company’s German home market and the development of digital businesses such as the Maxdome video-on-demand service.

ProSiebenSat.1, which competes with Bertelsmann SE- controlled broadcaster RTL Group SA, last year sold its SBS Nordic unit for $1.7 billion, using the sales proceeds to more than quadruple its dividend.

Last month, the company continued its shift to Web-based offerings when it acquired online travel provider Comvel GmbH and agreed to sell TV and radio stations in eastern Europe.

--Editors: James Callan, Mohammed Hadi