Following reports that RDF was considering a £50 million takeover bid headed up by Endemol cofounder John de Mol, an agreement has been reached. RDF Media Group has been sold to Bidco for £52 million.
Bidco is a new company formed by RDF’s executive directors and Dasym, an investment company managed by de Mol’s Cyrte Investment.
Under the terms of the agreement, the RDF’s shareholders – not including Bidco, CF1 Invest and the management team – will be entitled to 120 pence for each share while CF1 Invest and the management team will be entitled to preference shares in Bidco.
‘In this difficult economic environment and with an uncertain outlook for the sector and RDF’s customers, the Independent Directors believe that the proposals represent satisfactory value for RDF Shareholders, providing an immediate cash exit at a substantial premium to the recent market price,’ said Richard Eyre, Chairman of RDF, of the deal.
‘Cyrte’s sector expertise and financial strength makes them the ideal partner to support RDF through this next stage in its evolution. I look forward to working with them and the rest of the management team on building our position as one of the leading independent producers of content in the UK and US and a growing force in distribution worldwide,’ said David Frank, chief executive of RDF.