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Finland's Alma Media proposed to sell its broadcasting unit to top owners Sweden's Bonnier and Proventus for 460 million euros ($597.6 million) in a move seen burying Norwegian rival Schibsted's bid for the media house. Analysts said the move would be very good for media group Bonnier and investment fund Proventus, which will get control of Alma's most attractive business in exchange for their holding in the group.
In two deals conditional on each other Bonnier and Proventus would buy Alma's broadcasting assets, and sell their shares in Alma for 340 million euros to a new firm, Almanova. Almanova will then make a public offer for the remaining Alma shares.
"It seems that if it goes through, Bonnier and Proventus will be making a very good deal but the benefits for small shareholders are not very obvious," said Evli Bank's analyst Matti Riikonen, who rates Alma at "accumulate".
Through the deals, valuing all of Alma at some 813 million euros, Bonnier and Proventus will gain control of assets including Finland's top commercial television channel MTV3, and Alma's 23.4 percent stake in Swedish commercial TV-channel TV4.
"Two years ago we identified the broadcasting unit as a source of sorrow, it has now become an appealing golden egg," Alma's Chief Executive Juho Lipsanen told a news conference.
The proposed moves counter a surprise 705-million-euro bid unveiled by Norway's Schibsted for all of Alma Media in December. The offer was conditional on Alma not selling parts of its operations and is due to expire at the end of this month.
Alma has not commented on Schibsted's bid but said at the time it would continue to explore other options. It said on Monday the new proposal was "considerably higher in value" for shareholders than Schibsted's offer.
Alma will book a gain of around 320 million euros if the new deal is accepted by an extraordinary meeting of its shareholders on January 31. It said shareholders with around 75 percent of votes had "indicated their support" for the proposals.

Copyright Reuters, 2005

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