Tuesday, December 13, 2016

CORR : M6 in exclusive negotiations to acquire the radio operations of RTL GROUP in France – Le Figaro

(AOF) – A clarification was provided in the title of our despatch of the previous offers of M6 : it is the radio operations of RTL GROUP in France. The rest of the text is unchanged.

The M6 Group has entered into exclusive negotiations with the RTL Group for the acquisition of the radio division French to 216 million euros. This draft agreement provides for the acquisition of 100% of the securities of the radio division of RTL Group in France, which includes the radio stations RTL, RTL2 and Fun Radio, as well as their advertising (IP in France and Regions) and their internet activities. The pôle radio RTL Group is the leading private radio group in France with a turnover of 168 million euros in 2015.

M6 has stated that “the financial terms of the transaction, as provided for in the draft contract of sale of securities, and the shares appear to us to be fair from a financial point of view to the shareholders of M6. “.

The price rises to 216 million euros in non-cash, and its payment will be at the day of the realization. M6 intends to finance the transaction 100% of the debt, which would improve the structure of its balance sheet, with net debt the group’s estimated post-transaction of less than 1 times the EBITA 2015. To take advantage of favourable market conditions, M6 intends to put in competition with several banking institutions. Thus, the group would preserve its investment capacity to develop its other business lines.

Upon the completion of the operation, two regulated agreements will be put in place between the Groupe M6 and RTL Group, one in respect of a royalty for the use of the mark in RTL and the other for the rebilling of the costs of diffusion of RTL in the long-wave from Luxembourg. The annual amount cannot exceed 3% of the turnover of the cluster.

This project was initiated by M6 is a real opportunity for the group, which would add the Radio media to its activities in Television, Production & media Rights, and Diversification, and broaden its offer cross-media and its capacity for the development of diversification projects.

M6, aims for an EBITA of € 40 million for the radio division of horizon 2020.

The exclusive negotiations, which include the consultation of staff representative bodies concerned of the Radio division of RTL and Groupe M6, as well as the approval of the Superior Council of Audiovisual will be entered soon. RTL Group will also consult with the luxembourg government on the proposed transaction.

Nicolas de Tavernost, Chairman of the management Board of groupe M6, said : “This project is an important step for the group which would carry out the largest operation of external growth in its history, adding to its other activities, the craft of radio, asset indisputable to offer cross-media. It would thus be to combine the 2nd group of private French-language Television with the group 1 French private Radio”.

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