Menu
10/06/2002
Consortium prepares buy out of KirchMedia
KirchMedia, the majority stakeholder of the free-to-air broadcaster ProSeibenSat 1 and part of the ailing German media giant Kirch Gruppe, is on the verge of being bought over by a consortium comprising of WAZ Gruppe, Commerzbank AG and Columbia TriStar.
It is believed that the consortium will make an offer in the region of €2 billion at the end of this week for KirchMedia's library film and sports rights and its 52.2% stake in ProSiebenSat 1. The German-based WAZ Gruppe and Commerzbank AG are believed to have each put together 40% of the bid with Columbia TriStar representing a 20% stake.
The KirchMedia creditors, ring-fenced from the company since it filed for insolvency in April, met to consider the proposals last Thursday. It was further reported that the creditors have reacted favourably to the proposals.
The €2 billion offer would most likely wipe out KirchGruppe's debts without the need for the group to sell off its foreign shareholdings.
Other parts of the Kirch empire are already up for grabs, with KirchGruppe's stake in newspaper group Axel Springer, publisher of Bild and Die Welt, up for sale. Last week, KirchGruppe agreed to hand over its 40% stake in Axel Springer to main creditor Deutsche Bank if it could not sell the shares by the end of August. The Axel Springer shares are worth about €785 million, which would clear the €720 million loan from Deutsche Bank which Kirch defaulted on this year.
The insolvent business, which is understood to have been drawn up for auction by Investment bank UBS Warburg, has been the subject much of speculation, as industry observers link up to 50 companies to the company's interests. Axel Springer has also been mentioned as a possible buyer of KirchMedia as it already holds a stake of just under 11.8% in ProSiebenSat1.
Other companies linked to KirchMedia include Metro Goldwyn Mayer, Disney, AOL Time Warner and the Paramount studio business of Viacom.
Analysts believe that any serious bidders will be seeking to take over the business shorn of its liabilities.
(GMcG)
It is believed that the consortium will make an offer in the region of €2 billion at the end of this week for KirchMedia's library film and sports rights and its 52.2% stake in ProSiebenSat 1. The German-based WAZ Gruppe and Commerzbank AG are believed to have each put together 40% of the bid with Columbia TriStar representing a 20% stake.
The KirchMedia creditors, ring-fenced from the company since it filed for insolvency in April, met to consider the proposals last Thursday. It was further reported that the creditors have reacted favourably to the proposals.
The €2 billion offer would most likely wipe out KirchGruppe's debts without the need for the group to sell off its foreign shareholdings.
Other parts of the Kirch empire are already up for grabs, with KirchGruppe's stake in newspaper group Axel Springer, publisher of Bild and Die Welt, up for sale. Last week, KirchGruppe agreed to hand over its 40% stake in Axel Springer to main creditor Deutsche Bank if it could not sell the shares by the end of August. The Axel Springer shares are worth about €785 million, which would clear the €720 million loan from Deutsche Bank which Kirch defaulted on this year.
The insolvent business, which is understood to have been drawn up for auction by Investment bank UBS Warburg, has been the subject much of speculation, as industry observers link up to 50 companies to the company's interests. Axel Springer has also been mentioned as a possible buyer of KirchMedia as it already holds a stake of just under 11.8% in ProSiebenSat1.
Other companies linked to KirchMedia include Metro Goldwyn Mayer, Disney, AOL Time Warner and the Paramount studio business of Viacom.
Analysts believe that any serious bidders will be seeking to take over the business shorn of its liabilities.
(GMcG)
Related Northern Ireland Business News Stories
Click here for the latest headlines.
14 January 2019
New Accelerator Business Programme Launched
Armagh City, Banbridge and Craigavon Borough Council has announced a new Accelerator business programme, designed to help new and established businesses from across the borough to grow their business faster and smarter.
New Accelerator Business Programme Launched
Armagh City, Banbridge and Craigavon Borough Council has announced a new Accelerator business programme, designed to help new and established businesses from across the borough to grow their business faster and smarter.
19 December 2018
Accelerator Programme For Businesses Pitching For Investment
A new Accelerator Programme has been announced to help businesses in Armagh, Banbridge and Craigavon areas successfully pitch for investment The Programme offers guidance from leading industry and academic business experts who will show you how to successfully pitch for investment and engage with the major Northern Ireland business funding bodies.
Accelerator Programme For Businesses Pitching For Investment
A new Accelerator Programme has been announced to help businesses in Armagh, Banbridge and Craigavon areas successfully pitch for investment The Programme offers guidance from leading industry and academic business experts who will show you how to successfully pitch for investment and engage with the major Northern Ireland business funding bodies.
08 April 2002
KirchMedia declared insolvent as rescue package fails
KirchMedia has been declared insolvent after a last-minute rescue package by investors failed to materialise over the weekend. The failure of KirchMedia to survive its creditors will, however, not threaten owner Leo Kirch's most lucrative assets – the rights to broadcast the World Cup finals and the Formula One racing championships.
KirchMedia declared insolvent as rescue package fails
KirchMedia has been declared insolvent after a last-minute rescue package by investors failed to materialise over the weekend. The failure of KirchMedia to survive its creditors will, however, not threaten owner Leo Kirch's most lucrative assets – the rights to broadcast the World Cup finals and the Formula One racing championships.
10 May 2017
InterTradeIreland Announces Seedcorn Investor Readiness Competition
InterTradeIreland has issued a call for applications from start-up and early stage companies to enter the Seedcorn Investor Readiness Competition before the deadline of 26 May 2017.
InterTradeIreland Announces Seedcorn Investor Readiness Competition
InterTradeIreland has issued a call for applications from start-up and early stage companies to enter the Seedcorn Investor Readiness Competition before the deadline of 26 May 2017.
01 April 2011
Bank of Ireland Shares 'On The Rise'
A day after the publication of the Irish banking system stress test results, the Bank of Ireland have announced a rise in shares. The 33% jump is said to be a result of the government not having to take a majority stake in the firm. The stress tests concluded that Irish banks will need an injection of 24bn euros (£21.
Bank of Ireland Shares 'On The Rise'
A day after the publication of the Irish banking system stress test results, the Bank of Ireland have announced a rise in shares. The 33% jump is said to be a result of the government not having to take a majority stake in the firm. The stress tests concluded that Irish banks will need an injection of 24bn euros (£21.
-
Northern Ireland WeatherThis Evening and Tonight:It will be cloudy with a spell of heavy rain pushing south through late evening and the early hours, soon followed by some clear spells. Minimum temperature 6 °C.
