ProSiebenSat.1 Media Shareholders Reject MFE-MediaForEurope’s Split Plan
Nearly 71% of the votes cast at ProSiebenSat.1’s AGM were in favor of the proposal, falling short of the 75% required for the resolution to be approved
ProSiebenSat.1 PSM -3.12%decrease; red down pointing triangle Media shareholders rejected a proposal by top investor MFE-MediaForEurope MFEB -3.03%decrease; red down pointing triangle to begin preparations for splitting the German company into two businesses as it didn’t get the required majority.
Nearly 71% of the votes cast at ProSiebenSat.1’s annual general meeting on Tuesday were in favor of the proposal, falling short of the 75% required for the resolution to be approved, while around 29% were against it, according to voting results published by the company.
MFE—the biggest shareholder in ProSiebenSat.1 with a 26.58% stake—in March called on ProSiebenSat.1 to begin preparations for a separation of its core entertainment operations from its noncore commerce-and-ventures and dating-and-video segments. ProSiebenSat.1 initially urged shareholders to reject MFE’s plan, but in April said it had started a sale process for its Verivox and Flaconi e-commerce businesses to reduce debt.
ProSiebenSat.1 said Tuesday that its free-float shareholders supported all of the management team’s proposals and confirmed its strategy to focus on its entertainment business.
MFE said it welcomed the decisions adopted at ProSiebenSat.1’s AGM. The fact that discussions about a breakup took place created value for ProSiebenSat.1’s shareholders, with shares rising more than 22% since it made its proposal public, MFE said.
ProSiebenSat.1 said MFE also rejected a proposal from ProSiebenSat.1’s supervisory board for a reorganization regarding its Joyn streaming platform. Under the proposal, Joyn would have become directly subordinate to the group and would have become the parent company of Seven. One Entertainment, allowing it to use losses carried forward for tax purposes, ProSiebenSat.1 said.