KKR buys 5.2% stake in ProSieben

The rationale behind the GP's investment is understood to be that the firm believes the strength of the company is not adequately reflected in its share price. In addition, the firm is familiar with the company and the sector, having previously invested in and listed the asset.

ProSieben currently has a market capitalisation of €2.57bn and was valued at €5.6bn when Permira and KKR originally invested in the company in 2007.

The GP owns a 3.2% stake directly and a 2% stake via unspecified instruments.

KKR deployed equity from KKR European Fund V, which held a final close in November 2019 on €5.8bn. The fund previously backed the take-private of Germany-based media conglomerate Axel Springer in August 2019. The fund also deployed equity alongside its 12th North American fund to finance the GP's investment in US-based Coty's Professional Beauty division.

ProSieben's shares were valued at €10.65 apiece at the time of publication.

Previous funding
KKR has previously invested in ProSieben, having acquired a 50% stake in the company alongside Permira via the newco Lavena Holding 4 in January 2007. The deal was valued at €3.1bn, while ProSieben was valued at approximately €5.6bn at the time, and was bought from German Media Partners, a consortium including financial investors Bain Capital Partners, Hellman & Friedman, Providence Equity Partners, Quadrangle Group and Alpine Equity Partners.

Permira and KKR also bought a further 12% stake in ProSieben, valued at €509.4m, from Axel Springer later in 2007.

In February 2013, KKR and Permira listed shares valued at €485m on the Frankfurt Stock Exchange, but retained a 44% stake in ProSieben. In September that year, the GPs sold a further 11% stake in the company, listing 25 million shares amounting to €760m. In November, the GPs sold a 16% stake, comprising 35 million shares and valued at €1.1bn.

The GPs fully exited ProSieben in January 2014, selling their remaining 17% stake, valued at €1-1.3bn.

Company
ProSieben is a Germany-based TV broadcasting network available in Germany, Switzerland and Austria. The company produces national and international TV programmes, including Germany's Next Top Model. ProSieben has struggled in the wake of the coronavirus pandemic and saw advertising revenue fall by 40% in April 2020.

The company's 2019 revenue increased by 3% in 2019 to €4.135bn, but its EBITDA fell by 14% to €872m.

Italy-based Mediaset owns a 24.2% stake in the company, while Czech Media Invest owns 10%.

People
ProSieben – Rainer Beaujean (chief financial officer).

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