BayernLB to acquire EM.TV stake in SLEC

Three years after its F1 involvement began, EM.TV & Merchandising has reached an agreement with Bayerische Landesbank in their dispute over the German media company's shares in SLEC Holdings, the F1 commercial rights holder. Subject to EU Competition Commission approval, EM.TV will now sell its 16.7 percent stake to a BayernLB subsidiary for ?8.5m. The shares had been booked with a worth of ?204m

Feb 19, 2003, 9:05 AM

Acting as the security trustee for the 'F1 banks' (comprising BayernLB itself, JP Morgan and Lehman Brothers), BayernLB had claimed that EM.TV's stake had been pledged as security for loans made to the bankrupt Kirch Gruppe, along with Kirch's own stake which the banks already control. In December, however, a court in Jersey granted EM.TV an injunction preventing BayernLB from enforcing any security over its shares, which are indirectly held by EM.TV through a 22.3 percent interest in the Speed Investments company.

The ruling meant that the three banks were unable to enforce their security pending determination by the court of its validity. The new agreement, which is yet to be approved by JP Morgan and Lehman Brothers, provides for the termination of the legal proceedings in Jersey.

If approved, the acquisition from EM.TV will increase the banks' holding in SLEC to 75%. A Bernie Ecclestone family trust still holds the remaining 25%.