MILAN: French media group Vivendi will vote in favor of plans to introduce a dual-class share structure in Italian broadcaster Mediaset, the companies said on Thursday.
Controlled by the family of former Italian prime minister Silvio Berlusconi, Mediaset moved its legal headquarters to the Netherlands earlier this year to form an alliance with peers to form a pan-European TV champion.
As part of this strategy, Mediaset is proposing to introduce a dual-class share structure, in which each B share is valued at 10 times the value of an A share, as well as a 10-to-nominal value for voting rights. Is. With 1 ratio. are given.
Analysts have said such a plan could allow Mediaset to structure future M&A deals, which could reduce voting for existing core shareholders.
A shareholder meeting is scheduled for November 25 to vote on the plans.
The companies said, “The parties have agreed … Vivendi shall be entitled to exercise voting rights directly attached to the shares – and will instruct Simon Fiduciaria to exercise voting rights associated with the shares held on behalf of Vivendi.”
Vivendi directly owns 4.8% of Mediaset voting rights, while 19.9% is held by Simon Fiduciaria, a trust that owns Vivendi’s shares.
Mediaset and top investor FinInvest, which holds a 51% voting stake in the group, in May signed a deal with Vivendi to settle a five-year legal battle.
Under that agreement, the French company would sell the entire equity stake in the Italian broadcaster through Simon Fiduciaria within five years.
The companies said on Thursday that the parties have agreed on new minimum prices for the share sale in light of the proposed dual-share structure, with no difference between A and B shares.
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