Last Friday Dutch publishing group TMG, owner of De Telegraaf newspaper, said it was forced to buy a stake in the ProSiebenSat.1 group at a cost of €28.71 per share. As a result, the publisher stands to make huge losses, as the current value on the stock market is €5.42.
The transaction is a result of an agreement made last year when TMG sold its 20% interest in SBS Broadcasting to investors KKR and Permira for €433 million. De Telegraaf now has to buy a 12% interest in ProSiebenSat.1 for @377 million. The publisher stands to lose between @150 and 200 million on the deal.
