Capital Research and Management Funds, part of The Capital Group, will become a shareholder of KirchMedia. In return for a share of 3.5 per cent, the Los Angeles-based company will invest DM507.8 million (Euro259.6 million) in KirchMedia via a capital increase.
This transaction is based on an overall valuation of KirchMedia at DM15 billion, Kirch Group said in a statement. KirchMedia incorporates the Munich-based media group’s activities in international and domestic rights trade, production, free to air television and film technology. Capital Research is the fourth major investor in KirchMedia. In July Fininvest and Prince Al Waleed as well as Lehman Brothers acquired shares. Following the capital increase dedicated to Capital Research, Kirch Group, being the largest shareholder, holds 87.5 per cent with Fininvest, Prince Al-Waleed and Lehman Brothers owning 2.98 per cent each. Leo Kirch’s son Thomas will soon obtain shares in KirchMedia as well. The transfer of his stake in Pro Sieben Media AG to KirchMedia will be effective as of January 1, 2000. KirchMedia is the majority shareholder of the German TV channels SAT.1 (59 per cent) and DSF (100 per cent) and, through the deal with Thomas Kirch, will soon be a major shareholder in Pro Sieben, Kabel 1 and N24. In addition, it holds equity interests in the television operators Mediaset (Italy) and Telecinco (Spain).
