RTL Lists On Stock Exchange With Value Of £16.6bn

RTL Group has floated on the London Stock Exchange today with a market capitalisation of £16.6bn. This figure is well above the price of £14bn anticipated when the listing date was announced earlier in the month (see Pan-European Broadcaster Announces London Listing Date).

A surge in the shares of Audiofina is thought to account for the rise in market capitalisation. Audiofina owns a 49.85% share in European broadcasting group CLT-UFA. In April the creation of RTL was announced when Audiofina’s majority shareholder Groupe Bruxelles Lambert (GBL) and Bertelsmann, the two co-controlling shareholders of CLT-UFA, agreed to merge the group with Pearson’s television interests (see Pearson In Merger Deal To Create European TV Giant). Following the deal, Bertelsmann will own 37% of RTL, GBL 30% and Pearson 22%.

Only 10.3% of RTL is being floated, which mean that it will not qualify for inclusion on the FTSE 100 index, which requires 15% of a company to be floated. Its shares will be quoted in euros.

Many expect RTL to reach an agreement with United News & Media regarding the purchase of United’s 35% interest in Channel 5 (see United Completes Divestment As Rivals Prepare For Carve-Up). RTL currently holds a 65% stake in the channel, but United still has a say in its running.

Pearson: 020 7411 2000