MediaForEurope to complete Spanish merger on May 3

MediaForEurope (MFE) expects to complete its merger with Mediaset España, bringing the Italian and Spanish media groups together under a single-unified ownership, on May 3.

MFE said that fulfilment of all the conditions precedent and pre-merger formalities to which the Merger is subject would be completed today, with execution of the merger deed by MFE and Mediaset España before a civil law notary officiating in the Netherlands to be completed on May 2.

May 2 will be the last day of trading of Mediaset España shares on the Spanish stock exchanges. MFE aims to apply for admission to listing of all its ordinary class A shares on the Spanish Stock Exchanges for trading as soon as possible within a period of three months from the completion of the cross-border merger.

The long-awaited completion of the merger follows approval by Mediaset España’s shareholders in March.

That move marked the start of the ecisive phase in the Berlusconi family’s long-held ambition to create a pan-European broadcast organization. Shareholder approval followed on after approval by the boards of the Spanish outfit and MFE in January, despite opposition from Dissenting shareholder José Antonio del Barrio Colmanarejo who accused Mediaset España’s managers of failing to defend the interests of shareholders in the face of what he saw as an undervaluation of the company.

That came a year after MFE failed to reach a crucial 90% threshold of ownership during a takeover bid for the 44.3% of the company that it did not already control. MFE managed to secure only 82.92% of the company’s shares in the face of opposition from some shareholders.

MFE has committed to maintaining operations and production activities in both Italy and Spain.

MFE has long touted the benefits of a cross-border merger and the creation of pan-European media champions to compete more effectively in the emerging audiovisual media landscape.