MFE waives minimum acceptance for Mediaset España offer

MediaForEurope (MFE) has waived the minimum acceptance threshold relevant to its attempt to take control of Mediaset España after failing to secure sufficient shares.

The move means that MFE will hold 82.92% of the Spanish unit’s shares, short of the 85% required under the minimum acceptance threshold. The media group communicated its decision on the waiver to the Spanish regulator, the CNMV.

MFE already holds 55.69% of Mediaset España’s shares.

Spanish press reports suggest that MFE secured the acceptance of institutional shareholders in its attempt to wrest control of the Spanish operation, owner of the Telecinco commercial channel.

Shareholders who submitted their shares will be entitled to a dividend of €0.05 per share, as announced by MFE at the end of June, a reversal of its previous policy of not issuing a dividend.

MFE’s ultimate goal is to delist the Spanish operation, but it requires control of 90% of its shared to move forwards with this. The company appears to have set this aside for now, with sources nevertheless telling Spanish press that the result of the tender offer will not be an obstacle to plans to create a broader pan-European media group.

MFE had previously improved the terms of its public offer, improving the cash element of its offer for Mediaset España shares.

The original offer had met with widespread rejection by Mediaset España shareholders, leading to a decline in the broadcaster’s share price from the time the offer was made.

The last few months have seen the share price of both Mediaset España and – by a larger amount – MFE fall significantly.