Mediaset: Oddo's opinion on Pro7Sat1's offer
(CercleFinance.com) - Today Oddo wrote in its daily equity roundup that according to different press sources, Mediaset is considering merging with Pro7Sat1, with an offer due to be considered by Mediaset's board of directors in February.
The discussions do not concern TF1, which has been mentioned several times in the press, Oddo said.
Analysts believe that a merger between free TV channels is feasible and this event fully highlights Pro7Sat1's status as a takeover target (trading at a particularly low valuation, with a 2019 P/E of 8.6x).
However, in this case, the only possible setup would be a merger between both players, which would result in an offer in Mediaset shares on Pro7Sat 1. Indeed, the group does not have the cash available to make a cash takeover bid given Pro7Sat1's size (market capitalisation of 3.9 billion euros), Oddo adds.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
The discussions do not concern TF1, which has been mentioned several times in the press, Oddo said.
Analysts believe that a merger between free TV channels is feasible and this event fully highlights Pro7Sat1's status as a takeover target (trading at a particularly low valuation, with a 2019 P/E of 8.6x).
However, in this case, the only possible setup would be a merger between both players, which would result in an offer in Mediaset shares on Pro7Sat 1. Indeed, the group does not have the cash available to make a cash takeover bid given Pro7Sat1's size (market capitalisation of 3.9 billion euros), Oddo adds.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.