Banijay has backing from Vivendi in auction for Endemol Shine – report (translated)
Listed French media and telecoms group Vivendi [EPA:VIV] is understood to be backing Banijay, a French TV production company, in the auction for Dutch competitor Endemol Shine, French daily Les Echos reported.
The report, which did not reveal its source of information, said that Vivendi, which controls more than 30% of Banijay, is supporting the acquisition and would be willing to reinvest cash in Banijay in order to maintain a 30% shareholding in a combined Banijay-Endemol Shine. The report added that the debt of the combined Banijay-Endemol Shine would be less as compared to the current debt of Endemol Shine alone.
The report cited a person in the know as saying that Endemol could be valued at around EUR 2bn only, while vendors Apollo [NYSE:APO] and 21st Century Fox [NASDAQ:FOXA] were initially expecting between EUR 2.5bn and EUR 3bn.
Banijay, described by a source as the “only credible” bidder left, is believed to have made it to the final shortlist along with a few other bidders, which could also include Endeavour, a Californian artist management company.
The report noted that listed UK TV group ITV [LON: ITV] confirmed this week it has walked out of the auction, with Luxembourg-based RTL [VIE: RTL] and its production subsidiary Fremantle also walking out earlier from the auction.