The Highlight Event and Entertainment company has approved an ordinary capital increase and the extension and increase of its authorised share capital amid reports that chairman Bernhard Burgener will seek to use this to drive a takeover bid for German media company Constantin Medien.
At an extraordinary shareholders’ meeting held yesterday (Tuesday), Highlight Event and Entertainment approved a proposed ordinary capital increase from the current CHF15,592,500 (€14.36m/$15.67m) to a maximum CHF62.37m.
The Manager Magazin business news publication last week reported that Burgener plans to present a takeover offer for Constantin shareholders in the first half of May, backing his cause by inflating Highlight Event and Entertainment with equity.
The development comes as the latest move in a long-running battle for power at Constantin Medien. Burgener is keen that the company retain its interests in a wide variety of sectors, while supervisory board chairman Dieter Hahn and chief executive Fred Kogel are aiming to sell its film business in an effort to focus on its sports interests.
Highlight Communications last month said it had taken measures to ward off hostile takeover attempts as the dispute with its parent company, Constantin Medien, continued.
Highlight granted options to two independent foundations to temporarily acquire a majority of the ordinary shares of Team Marketing, the sports and event marketing agency it controls, as well as Constantin Film. Highlight said it made the move in a bid to ensure that the material economic interests of the company and its minority shareholders were safeguarded.
A takeover approach from Hahn for Constantin and Highlight was rejected by the latter entity in December. A battle for power at Constantin was sparked by a tumultuous annual general meeting in November. Constantin said December’s takeover offer was framed in order to “prevent further damage caused by shareholder disputes”.
In March 2015, Team Marketing reached a long-term agreement with Uefa, European football's governing body, under which it will continue as the exclusive agent for the global marketing of commercial rights relating to the Champions League, Europa League and Super Cup club competitions.
The term of the new agency agreement covers Uefa club competitions from the 2015-16 season to the end of the 2020-21 campaign and, subject to Team’s ongoing performance, will also include seasons 2021-22 to 2023-24. Team is responsible for the worldwide marketing of media, sponsorship and licensing rights to the three competitions.