RTL Group Acquires over 3 Million Shares, Fails to Reach Initial Goal
RTL Group, the European media giant, has announced its plans to fortify its share position in anticipation of the impending Sky acquisition and 'other future acquisitions.' The company has disclosed that it will be augmenting its share capital by procuring approximately 0.8 million outstanding shares on the open market.
This maneuver is part of RTL Group's recent stock repurchase program, following the acquisition of 3.17 million shares directly. The final purchase price per share will be set at €37.85.
The Sky acquisition, valued at a cash purchase price of €150 million, is contingent upon approval by European antitrust regulators. The deal also includes an additional agreement for a variable component, which could potentially amount to an additional €377 million for Comcast, the current owner of Sky.
The variable component is subject to certain adjustments, and RTL Group has the option to settle the counter-performance in shares, cash, or a combination of both. If RTL Group's share price surpasses €41 within five years, Comcast can trigger the variable component.
To date, only 1,166,052 new shares have been added to RTL Group as a result of the repurchase. The repurchase period has expired, and the remaining shares will be procured on the open market.
The announcement regarding the final purchase price and the reinforcement of RTL Group's share position was made from the company's Luxembourg headquarters. The transaction is expected to be completed on September 17.
Initially, the original target for the repurchase was 4 million shares. A total of 3,166,052 RTL Group shares were offered to the company during the repurchase period, priced between €30.85 and €37.85 per share. This includes 2 million shares previously held by the parent company Bertelsmann.
The repurchased shares will be added to RTL Group's share capital, fortifying the company's position as it prepares for the Sky acquisition and future acquisitions. This strategic move is expected to enhance RTL Group's financial agility, allowing the company to navigate potential challenges and seize opportunities in the rapidly evolving media landscape.
