Endemol Shine sale on hold, not cancelled; private sale to Banijay for upwards of USD 2bn possible – report (translated)
07 NOV 2018
The sale of the Netherlands-based TV production company Endemol Shine has been delayed and put on hold, French daily Les Echosreported, citing several people with knowledge of the matter. According to the sources, the disposal of the business by vendors Apollo[NYSE:APO] and 21st Century Fox [NASDAQ:FOXA] could be delayed by several months, but is not “fully dead”.
The report claimed that as the potential buyers and the vendors disagree on the price of the target, the vendors have decided to take more time and improve the financials of the business. The report noted that with a debt of EUR 1.7bn, the adjusted debt to EBITDA ratio of Endemol Shine amounts to 9 for Standard & Poor’s and 7.5 for Moody’s.
The report went on to say that Banijay, a French TV production company, is still interested in the business and could have improved its initial offer to more than USD 2bn. Discussions between Banijay and the vendors could therefore continue, or start again with a direct private sale of Endemol Shine to Banijay rather than via an auction, according to the report.
French media and telecoms group Vivendi [EPA:VIV], a minority shareholder in Banijay, is understood to support the acquisition. The report claimed that French investment holding Fimalac could also back the acquisition via an investment in LOV Group, the holding vehicle for Stéphane Courbit, the founder and main shareholder in Banijay.
Endemol Shine reported an EBITDA of EUR 224m on revenues of EUR 1.85bn in 2017. Banijay and Endemol Shine owners did not comment on the information, the report noted.