The long bidding process for the core business of KirchMe-dia has successfully been concluded. Insolvency manager Dr. Michael Jaffé and the Kirch Media management have agreed on all material and economic terms of the respective contracts with American media investor Haim Saban and the representatives of the Saban Group.

In a first step the parties signed the contract on the purchase of the majority in ProSiebenSat.1 Media AG. According to this contract, a newly founded subsidiary company of Saban Group is acquiring from the insolvent KirchMedia GmbH & Co. KGaA 36 percent of the ordinary shares (72 percent of the voting rights) of the TV channel group.

The contract on the acquisition of the film library and the film trade business is going to be signed within the next 10 days. The parties have agreed on the terms of this contract as well. However, until the final signing, around 40.000 pages have to be finally checked and compiled into a comprehensive contractual agreement including a number of appendices.

The deal will close following the approval of the creditor committee of KirchMedia, the Bundeskartellamt (federal anti-trust authorities) and the KEK (the federal regulatory body for media concentration in Germany). The contract partners have agreed on confidentiality concerning the purchasing price.

‘We are extremely excited about the opportunity that lies ahead for us in rebuilding Germany´s greatest media assets,’ said Haim Saban. ‘I am confident that with our extensive experience and contacts in the global media industry combined with the contin-ued hard work and commitment of the talented management team and employees of KirchMedia and ProSiebenSat.1 Group, we will be well positioned for significant long-term growth as advertising levels recover and overall economy improves in the world´s second largest media market.’

Insolvency administrator Dr. Jaffé welcomes the ‘pleasant and professional atmosphere during negotiations.’ He is confident that the closing and with that execution of the contract ‘will be quickly completed.’ Managing director Hans-Joachim Ziems regards the commonly achieved results ‘as highly satisfactory for all participants.’ Ziems: ‘We are particularly pleased that we were able to continue the operation of the core assets as a fully integrated media company and that we have found a partner with such exten-sive global media experience as Haim Saban and his managers.’
For managing director Wolfgang van Betteray this one-year task in Ismaning was the most challenging assignment of his career.’

Before the signing of the contracts the insolvency court in Munich has decided by order of the management of KirchMedia and the solicitor Dr. Jaffé to annul the insolvency. Dr. Jaffé was then appointed insolvency administrator in a so-called regulation insolvency proceeding. This gives the buyer the largest possible legal security. The present managing director Ziems will continue to be available as a consultant, his colleague van Betteray will advise on several projects.

Ziems conclusion: ‘Together with the sale of the sports rights group last October and further companies in the production and services sector the most important assets of KirchMedia, an estimated 85 percent of the asset side, have been sold’. Given the large number of not yet sold smaller subsidiary and affiliated companies in Germany and abroad as well as further tasks Dr. Jaffé is expecting a proceedings period of 12 to 15 years.

Saban group is a private investment firm specializing in the media and entertainment industries. TV specialist Haim Saban founded Saban Entertainment and the TV network Fox Family Worldwide. In fall 2001 in Saban sold Fox Family Worldwide to the Walt Disney Corporation. Saban has decades of experience in the TV business, including the production and distribution of children and family shows as well as the film rights trade and the operation of TV channels.

The Haim Saban group is being advised by the investment bank Rothschild, the law firms Freshfields Bruckhaus Deringer and Hogan & Hartson Raue and the financial communications agency Citigate Dewe Rogerson.

For more details contact:

Rudolf Wallraf, RW-Konzept GmbH
(t) +49 (0)9 99562324
(m) +49 (0)3 2678888