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TMG recommends Mediahuis/VP Exploitatie
Posted on Thursday, 20 April 2017 11:15
The tug-of-war over the Telegraaf Media Group (TMG) has taken a turn after the supervisory board of the Dutch media company backed the lower bid tabled by Belgian publisher Mediahuis and partner VP Exploitatie.
At EUR 6.00 apiece, the recommended cash offer represents a premium of 73.0 per cent to the closing price of EUR 3.48 on 13th December 2016, the day before the consortium made an unsolicited indicative proposal.
Mediahuis and VP Exploitatie, the independent local investment and management company owned by the Van Puijenbroek family, already control just shy of 60.0 per cent and have scuppered John de Mol’s contested bid.
Their proposal values TMG’s entire share capital at EUR 278.00 million, compared to the EUR 301.28 million counteroffer tabled by the Dutch tycoon’s vehicle Talpa.
The deal slated to complete in July 2017 would create a Dutch-Belgian provider of news and entertainment which would reach consumers across all channels, such as online, print and radio, and formats ranging from video to text.
While this combined group is expected to retain its focus on its core news division, it would also continue to build a portfolio of digital only content, classified and e-commerce banners and platforms that should fuel future growth.
As one of the largest media companies in the Netherlands, TMG has a slew of strong strings to its bow, such as De Telegraaf and Privé; regional dailies like Noordhollands Dagblad; and online brands Gaspedaal and GeenStijl.
Through Keesing Media, it is billed as a market leader in Europe in the field of puzzle magazines and digital puzzles, though Mediahuis and VP Exploitatie have earmarked this division for a potential divestment.
Following the takeover TMG will become part of one of the leading media groups in Belgium and the Netherlands which owns publications such as De Standaard, Het Nieuwsblad/De Gentenaar and Gazet van Antwerpen.
Mediahuis, as it currently stands, sells around 760,000 newspapers and reaches more than 1.60 million digital news consumers on daily basis.
© Zephus Ltd