Scripps’ chairman and president, Kenneth Lowe, said it intends to make a public tender offer to buy the rest of the company “to fully realise the strategic and financial opportunities afforded by the TVN acquisition.”
In March, Scripps struck a deal with ITI Group and France’s Canal+ Group to take a 52.7% stake in TVN for €584 million in cash, plus the assumption of €840 million of debt – a deal that is expected to close in the third quarter.
Within three months of the closing, Scripps will now be required under Polish law to make a mandatory public tender offer to increase its ownership interest in TVN up to 66%.
After that, Scripps said it plans to offer to buy the remaining public ownership in TVN, and delist it from the Warsaw Stock Exchange. It has not yet set a price for the offer.
“TVN is a strong and compelling business in one of Europe’s key media markets, and under Markus Tellenbach’s leadership, it will play an important role in our continued expansion in the region,” said Lowe.
Tellenbach, who is CEO and president of the management board at TVN, said that the company’s board welcomed Scripps’ 100% takeover plans as it will “allow both companies to fully exploit the strategic development opportunities and financial benefits in Poland and the region.”
“I look forward to working closely with Kenneth Lowe and his team to expand TVN’s operating business whilst leveraging its strong asset base to accelerate growth in the vast changing media industry in Poland and abroad.”
Financial analysts previously predicted that the cost of Scripps’ deal for TVN could rise to US$2 billion (€1.89 billion) if it did move to buy the outstanding shares in the Polish broadcast group.