Mediaset investors agree to abolish loyalty share program
Shareholders of Mediaset (MS.MI) agreed on Thursday to drop a loyalty share program at the Italian broadcaster as part of a larger deal reached earlier in May to end a multi-year dispute with its second investor, the French media group Vivendi (VIV .PENNSYLVANIE).
Mediaset had proposed to remove the device, which rewards long-term investors with additional votes and would have strengthened the grip on the company of its main investor, the family of former Prime Minister Silvio Berlusconi, as a sign of goodwill towards Vivendi, which had challenged the measure in court.
All shareholders present at a virtual meeting voted in favor of removing the system, a source familiar with the matter said.
Earlier this month, Mediaset and Vivendi ended years of legal fighting with a deal under which the French group will drastically reduce its stake in Italy’s leading commercial broadcaster. Read more
As part of this agreement, Vivendi also agreed to support a separate proposal to move Mediaset’s head office to the Netherlands, seen as essential to continue its international expansion in order to combat growing competition from streaming services such as Netflix (NFLX.O) and Amazon Prime (AMZN.O)). Read more
This decision will be put to a shareholder vote on June 23.
Mediaset had previously been forced to suspend plans to create a Dutch holding company and to suspend plans for European expansion due to opposition from Vivendi after a failed pay-TV deal in 2016 plunged the two companies into the water. media in a bitter court war. Europe.
Following a series of favorable court rulings, Vivendi recovered all of the voting rights on its 29% stake in Mediaset, making its support essential to Mediaset to advance extraordinary initiatives, including the loyalty program or the change of legal basis.
Mediaset shares were up 0.5% at 11:04 a.m. GMT, in line with the All Stock Index of Italy (.FTITLMS).