ProSiebenSat.1 Offloads Dutch, Belgian TV Operations

AMSTERDAM/MUNICH: Dutch media group Sanoma is acquiring ProSiebenSat.1 Media’s broadcasting and print assets in the Netherlands in conjunction with John de Mol’s Talpa Media, while partnering with two other companies to acquire its Belgian channels.

The deals do not include ProSiebenSat.1’s production businesses in those territories. The total enterprise value underlying both transactions is 1.225 billion euros. "The transaction value for the assets in Belgium and the Netherlands represents a significant strategic premium on our group trading multiple," said Thomas Ebeling, the CEO of ProSiebenSat.1 Media. "This valuation upside benefits both the company and our stakeholders."

In the Netherlands, Sanoma will have 67 percent of the acquired assets—which include Veronica Magazine, Totaal TV Magazine and the SBS6, Net5 and Veronica stations—with the remaining 33 percent held by Talpa. The current Dutch SBS management will report to a new supervisory board, four members of which will be appointed by Sanoma and two by Talpa Media.

The Belgian deal, encompassing VT4 and VIJFtv, has been closed with Sanoma Corporation, Corelio N.V. and Wouter Vandenhaute & Eric Watté, the founders of Woestijnvis, a leading TV production company in Flanders. Each of the three partners will hold a 33-percent stake. The Belgian SBS activities will be part of De Vijver, which will be headed by Wouter Vandenhaute. The partners will establish an executive board with three members from each company.

These assets have been part of ProSiebenSat.1 since 2007, when it acquired SBS Broadcasting. The sale comes following a review of the Belgian, Dutch and Nordic markets. "The transactions will significantly reduce net financial debt and leverage of our company," Ebeling said. "Management is committed to reducing leverage even further. We are therefore targeting a new short- to mid-term leverage of 1.5 to 2.5 times net debt to recurring EBITDA for the company." 

He added, "The Nordic markets continue to be attractive assets for our group. Due to their dynamic growth in advertising and in carriage fees, they are a valuable cornerstone of our revenue diversification strategy."

Harri-Pekka Kaukonen, president and CEO of the Sanoma Group, said of the acquisition, “Sanoma has the ambition to build strong media positions in its core markets. With this significant TV acquisition, Sanoma will become a leading media player in the Netherlands and considerably stronger in Belgium. Our strong brands and content know-how from our magazines and our high-class digital operations combined with the SBS TV activities and the creative programming expertise from our partners are perfect building blocks in a transforming media landscape, and allow us to offer new services and solutions across media. We believe that by combining our media assets in a new way in the future, we will create a true next generation media offering.”

De Mol noted, "Sanoma has strong brands, making the company a great cooperation partner. The SBS transaction offers three additional TV channels for Talpa Content and Talpa Productions to create and produce our formats for. Besides that, the number of possible combinations with Sanoma magazines and online services is enormous. Both as an investor in the media industry and as a content developer, I am very pleased with this unique opportunity."

Eija Ailasmaa, president of Sanoma Media, added, “Our magazine, online and mobile portfolio combined with TV activities enable Sanoma Media to provide consumers in the Netherlands and Belgium access to inspiring and enjoyable information and entertainment where, when and how they want. With our new offering, we will be in the forefront of reshaping the media market.”