Highlight Communications (HLC) has confirmed it intends to lodge a takeover bid for its parent firm, German media company Constantin Medien (CMAG).
The announcement follows speculation in recent months over such a move. Indeed, Highlight last month sought to play down reports of an imminent takeover. Multiple reports stated that Highlight had made a takeover bid of more than €2.3 ($2.7) per share for Constantin, which is in the process of restructuring its operations. Highlight said such reports were based on the “misinterpretation” of a factual clause, but has now confirmed that an offer is in the works.
Highlight said it and Lucerne-based investment company Studhalter Investment (SIAG) have made a takeover offer at a price of €2.3 in cash per CMAG bearer share, which could be worth up to €151m.
Publication of the offer document, which may only take place after approval by the German Federal Financial Supervisory Authority, is expected to occur next month. Highlight said in a statement: “A successful takeover offer will help to put an end to the crippling blockades that arose in connection with the disagreements with the former CMAG management until August 2017 and to focus on the reorganisation and further development of the group in order to create sustainable value for all stakeholders.
“HLEE and the other parties of the framework agreement intend to consistently pursue the growth strategy of HLEE, HLC and CMAG. They are convinced that a realigned shareholding structure would unleash organisational synergies. A strong base of core shareholders that acts strategically in concert and which can continue developing the business model with a long-term perspective and contribute the necessary financial resources, is helpful in achieving these objectives.”
In a statement released on Tuesday, Constantin said that it noted Highlight’s decision and will issue a response in due course.