Getty Images; Picture Alliance, Collage: Dominik Schmitt
The MFE motion to split up ProSiebenSat.1 narrowly misses the necessary majority. The Berlusconi company is expanding its influence on the supervisory board and pushing through personnel proposals. The shareholders reject a request from the group for internal reorganization, which leads to tax losses.
The major Italian shareholder of ProSiebenSat.1 and TV group Media for Europe (MFE), which is close to the Berlusconi family, has suffered defeat in the power struggle over the desired split of the German TV company. At the same time, the Milanese were able to significantly expand their own influence on the composition of the supervisory board on Tuesday at the general meeting of shareholders.
The MFE motion on the idea of splitting up ProSiebenSat.1 narrowly missed the necessary majority. For success, the shareholders’ votes of at least 75 percent of the share capital would have been necessary. A good 70 percent came together. In response, MFE now demanded “tangible results” from management in order to increase the company’s value.
ProSiebenSat.1 was to be split up
As a first step, shareholders should decide at the general meeting whether a demerger should be examined. If this had been given the green light, a vote should be held next year on the actual separation of the business into two listed companies.
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MFE is an Italian TV company controlled by the family of the late former Prime Minister Silvio Berlusconi. With its 30 percent stake, the group is the largest investor in ProSiebenSat.1. The Italians’ goal: to separate the core TV business from other parts of the company such as Internet trading. The channel group also includes the voucher provider Jochen Schweizer.
The focus should be placed more on TV again. This also brings with it the hope that ProSiebenSat.1 shares will rise again. The company has been in trouble for some time. The stock is under a lot of pressure.
In the past there has been repeated speculation about how much influence MFE wants to have on ProSiebenSat.1.
The advance caused considerable unrest
The idea of splitting up from Milan surprised the management. Since then, the supervisory board and executive board have opposed it. The works council also made a public statement. What was remarkable was that the dispute was partly carried out in the open. In recent years, the relationship between Milan and Unterföhring has been considered rather cool. With the new ProSiebenSat.1 boss Bert Habets, the dialogue seemed to have improved. The MFE advance brought new unrest.
But the Milanese were also able to achieve success: the bottom line is that MFE has significantly expanded its influence on the supervisory board of ProSiebenSat.1. Both the Milan-based and the international investment firm PPF Group, which also holds a larger stake in ProSiebenSat.1, implemented their personnel proposals for the composition of the supervisory board – although management was against it.
ProSiebenSat.1 suffered defeat
The media group also had to accept another setback: according to ProSiebenSat.1 supervisory board chairman Andreas Wiele, MFE voted against the group’s request for an internal reorganization around the entertainment area and the streaming platform Joyn.
The proposed resolution was rejected by the shareholders. Wiele said that with the reorganization, loss carryforwards could have been claimed for tax purposes. The rejection means that possible tax savings in the hundreds of millions are denied. Wiele also spoke of losses running into millions in terms of lost interest income.
No peace at ProSiebenSat.1: Trouble with voucher subsidiary Jochen Schweizer
ProSiebenSat.1 is still dealing with an older problem regarding the voucher business of the subsidiary Jochen Schweizer mydays. Two former board members of ProSiebenSat.1 are said to have violated their duties in connection with discrepancies in the voucher business and thereby caused damage, as the supervisory board announced. Names were not mentioned. Whether claims for damages will be made against the people is currently being examined, said supervisory board member Rolf Nonnenmacher.
In February 2023, the control committee said it first learned of violations at the Jochen Schweizer mydays subsidiary voucher business. Nonnenmacher said about the complex: “There was a cover-up here.” It was about regulatory issues. The voucher business is a rather smaller area at ProSiebenSat.1 and offers, among other things, gift vouchers for travel, outdoor experiences or restaurants.
tlf/dpa