Hectic at RMB
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Swiss RMB gets caught up in the turmoil in BelgiumBy Markus Knöpfli There is no doubt that the debt of RMB International has consequences for the Swiss subsidiary RMB Switzerland. A sale is imminent. Rumor has it that there is talk of a management buyout, but competitors are also said to be lurking around.
Although Belgian newspapers had already reported in detail on the changes at the top of RMB International (RMBI) on January 28 (see page 1), RMB Switzerland only submitted a thin communiqué on the evening of February 1. However, there was no mention of the background of RMBI CEO Pierre-Paul Vander Sande's departure, nor of the high debts of the Belgian parent company, let alone of the fact that the European RMBI network is in the process of being dissolved.
Rather, the impact of Vander Sande's departure on the Swiss RMBI subsidiary was "put into perspective". RMBI Area Central Europe, which until recently included RMB Germany in addition to RMB Switzerland and RMB Austria, would function "autonomously and independently of the network" thanks to its own shareholder structure and direct management by local management, wrote Matthias Luchsinger, CEO of RMB Switzerland and also Manager Area Central Europe. He therefore does not expect any change for the day-to-day business. "We already made our adjustments in the areas of organization and media portfolio last fall," he wrote.
With a market share of around 90 percent, RMB Switzerland is the market leader in the Swiss cinema market and markets the advertising and program window of Sat 1 (Switzerland), the music channel MTV, the Swiss cinema magazine Close-up and the Lucerne adventure cinema IMAX.
Luchsinger confirmed the Belgian media reports only upon request. However, he corrects the impression that RMBI is bankrupt. "RMBI is not illiquid, the Group is doing well so far. This also applies to the Central Europe area, whose financing was always carried out independently of the group," he says. But it is true, he adds, that existing shareholders RTBF (33 percent) and UGC (67 percent) want to sell the entire RMBI network or even parts of it. Talks are currently being held to that effect.
As far as RMB Area Central Europe is concerned, RMB Switzerland and RMB Austria could possibly be "treated in a special way"; negotiations on this are currently underway. The shares in RMB Germany, on the other hand, had already been sold at the end of 2001.
Potential buyers first wave off
Now there are rumors that Luchsinger itself is seeking to acquire the rest of the Central Europe area and is planning a management buyout. What's the story? "There are various plans and possibilities for the branches in Switzerland and Austria," he says only, but then adds: "As an area manager, I am involved in the front line of negotiations on the RMBI side and am very committed to making myself available to help shape the further development of RMB Switzerland and Austria." Further information is expected in the spring.
Regardless of whether Luchsinger has intentions to buy, there seems to be no lack of interested parties. This is evidenced by the sale of shares in RMB Germany to the two other previous shareholders Apax and Pricoa. It cannot be assumed that these investors will also buy into RMB Switzerland. But rumor has it that Goldbach Media or SevenOneMedia are also interested in RMB Switzerland's portfolio - if not in the whole package, they might at least want to carve out the marketing of Sat 1 (Switzerland).
At both places, they wave it off: Both Christian Gartmann, Managing Director of SevenOneMedia (Switzerland), and Goldbach spokesman Paul Riesen say they have no contacts with Belgium, nor do they intend to enter into negotiations.
As an aside: According to RMB Germany, RMBI concluded a strategic cooperation agreement with Apax and Pricoa when changing hands in Germany. This includes, among other things, that RMB Germany can not only keep the name, but also remains part of the RMB network. In addition, RMBI received a buyback option...in case better times come again.
This also raises questions about Luchsinger's communiqué: How "autonomous and independent of the network" do the companies in the Central Europe area actually function? Is it justified to assume a courant normal in Switzerland after the turbulences in Belgium? Is RMBI looking for a similar solution for RMB Switzerland and Austria as it did for RMB Germany: The shares are sold, the name and thus also the international network remain, as well as a buy-back option? One thing is certain: Luchsinger, as Manager Area Central Europe, does not like to talk about the change of hands in Germany. And neither he nor RMBI have published anything about it yet.
Although Belgian newspapers had already reported in detail on the changes at the top of RMB International (RMBI) on January 28 (see page 1), RMB Switzerland only submitted a thin communiqué on the evening of February 1. However, there was no mention of the background of RMBI CEO Pierre-Paul Vander Sande's departure, nor of the high debts of the Belgian parent company, let alone of the fact that the European RMBI network is in the process of being dissolved.
Rather, the impact of Vander Sande's departure on the Swiss RMBI subsidiary was "put into perspective". RMBI Area Central Europe, which until recently included RMB Germany in addition to RMB Switzerland and RMB Austria, would function "autonomously and independently of the network" thanks to its own shareholder structure and direct management by local management, wrote Matthias Luchsinger, CEO of RMB Switzerland and also Manager Area Central Europe. He therefore does not expect any change for the day-to-day business. "We already made our adjustments in the areas of organization and media portfolio last fall," he wrote.
With a market share of around 90 percent, RMB Switzerland is the market leader in the Swiss cinema market and markets the advertising and program window of Sat 1 (Switzerland), the music channel MTV, the Swiss cinema magazine Close-up and the Lucerne adventure cinema IMAX.
Luchsinger confirmed the Belgian media reports only upon request. However, he corrects the impression that RMBI is bankrupt. "RMBI is not illiquid, the Group is doing well so far. This also applies to the Central Europe area, whose financing was always carried out independently of the group," he says. But it is true, he adds, that existing shareholders RTBF (33 percent) and UGC (67 percent) want to sell the entire RMBI network or even parts of it. Talks are currently being held to that effect.
As far as RMB Area Central Europe is concerned, RMB Switzerland and RMB Austria could possibly be "treated in a special way"; negotiations on this are currently underway. The shares in RMB Germany, on the other hand, had already been sold at the end of 2001.
Potential buyers first wave off
Now there are rumors that Luchsinger itself is seeking to acquire the rest of the Central Europe area and is planning a management buyout. What's the story? "There are various plans and possibilities for the branches in Switzerland and Austria," he says only, but then adds: "As an area manager, I am involved in the front line of negotiations on the RMBI side and am very committed to making myself available to help shape the further development of RMB Switzerland and Austria." Further information is expected in the spring.
Regardless of whether Luchsinger has intentions to buy, there seems to be no lack of interested parties. This is evidenced by the sale of shares in RMB Germany to the two other previous shareholders Apax and Pricoa. It cannot be assumed that these investors will also buy into RMB Switzerland. But rumor has it that Goldbach Media or SevenOneMedia are also interested in RMB Switzerland's portfolio - if not in the whole package, they might at least want to carve out the marketing of Sat 1 (Switzerland).
At both places, they wave it off: Both Christian Gartmann, Managing Director of SevenOneMedia (Switzerland), and Goldbach spokesman Paul Riesen say they have no contacts with Belgium, nor do they intend to enter into negotiations.
As an aside: According to RMB Germany, RMBI concluded a strategic cooperation agreement with Apax and Pricoa when changing hands in Germany. This includes, among other things, that RMB Germany can not only keep the name, but also remains part of the RMB network. In addition, RMBI received a buyback option...in case better times come again.
This also raises questions about Luchsinger's communiqué: How "autonomous and independent of the network" do the companies in the Central Europe area actually function? Is it justified to assume a courant normal in Switzerland after the turbulences in Belgium? Is RMBI looking for a similar solution for RMB Switzerland and Austria as it did for RMB Germany: The shares are sold, the name and thus also the international network remain, as well as a buy-back option? One thing is certain: Luchsinger, as Manager Area Central Europe, does not like to talk about the change of hands in Germany. And neither he nor RMBI have published anything about it yet.
