Highlight moves to defend against hostile takeover bids

Highlight Communications has said it has taken measures to ward off hostile takeover attempts as the dispute with its parent company, German media company Constantin Medien, continues.

Highlight said it has 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 has made the move in a bid to ensure that the material economic interests of the company and its minority shareholders are safeguarded.

Highlight said in a statement: “In particular, these measures are aimed at defending the company against takeover attempts by persons falsely presenting themselves in their legal dealings as members of executive bodies of affiliated companies.

“The measures resolved by the board of directors serve to ensure that, in the event of a hostile takeover attempt by such persons or third parties acting in concert with such persons, the company's material assets will be protected and access to these assets will be withheld from the aforementioned parties and secured for the company.”

The latest development comes after a takeover approach from Constantin Medien’s supervisory board chairman, Dieter Hahn, for the media company 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 world-wide marketing of media, sponsorship and licensing rights to the three competitions.