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KKR, Permira agree ProSiebenSat1 Nordic arm sale to Discovery

14 Dec 2012

Buyout heavyweights KKR and Permira are set for a windfall after portfolio company ProSiebenSat1 agreed to sell its Nordic operations to Discovery Communications for €1.325bn.

The strategic buyer edged out private equity firm Providence Equity Partners, while fellow firms Nordic Capital, BC Partners and EQT fell out of the bidding at an earlier stage.

KKR and Permira are set for a big dividend payout after the parent company said €500m would be used to pay off debt, with the rest available for other purposes including increasing distributions to shareholders.

Lavena, a holding company jointly controlled by KKR and Permira, intends to propose to shareholders a €1.2bn dividend distribution, or €5.60 per share, following the asset sale.

During 2012 the company made dividend payments to shareholders of about €245m.

The holding company said it also planned to propose converting its non-voting preference shares into common shares, which could then be sold on the stock exchange and help the firm’s exit the company.

ProSiebenSat1 tried to sell the Nordic unit last year but called a halt to the process after failing to receive acceptable bids.

The company sold its Dutch and Belgian operations to a consortium of media companies for €1.2bn last April, as part of a continued process to reduce its debt.

Prosieben’s Nordic arm had revenues of €476m last year out of a group total of €2.97bn

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