By Joshua Kirby
Bouygues SA said late Monday that it has entered exclusive negotiations over a merger between Television Francaise 1 SA and M6-Metropole Television SA, part of Luxembourg-based broadcaster RTL Group SA.
The merger between TF1 and M6 would create a streaming-focused French media group in a growth market, the telecommunications company said. RTL is majority-owned by German media group Bertelsmann.
Bouygues, which holds 43.7% of TF1, would hold 30% of the new group and have exclusive control over it after buying an 11% stake from RTL for 641 million euros ($778.9 million), according to the proposed deal. The deal would involve a special cash dividend payment of EUR1.50 a share to M6 shareholders.
Bouygues said the new group would have EUR3.4 billion in annual revenue and an operating profit of EUR461 million, according to pro-forma 2020 results.
The transaction, which has the approval of the boards of all involved companies, should go ahead by the end of 2022, pending employee consultations and antitrust clearance, Bouygues said.
Write to Joshua Kirby at firstname.lastname@example.org; @joshualeokirby
(END) Dow Jones Newswires