Telegraaf Rises After SNS Lifts Recommendation: Amsterdam Mover

Telegraaf Media Groep NV advanced the most in more than six weeks in Amsterdam after SNS Securities raised its recommendation on the shares of the publisher of the largest Dutch newspaper.

Telegraaf Media Groep, or TMG, gained as much as 5.9 percent, the biggest intraday advance since Jan. 4. Johan van den Hooven, an Amsterdam-based analyst at SNS, raised his recommendation to buy from hold and said the company may sell its 6 percent stake in German broadcaster ProSiebenSat.1 Media AG within the next year and return part of the proceeds to its shareholders.

ProSiebenSat.1 investors Permira Advisers LLP and KKR & Co. said Feb. 13 they’re selling 19.7 million preferred shares, equivalent to an 18 percent stake. This might be the first step to selling their whole stake, which should offer Amsterdam-based TMG an exit as well, Van der Hooven said.

“We expect TMG to return 200 million euros out of the ProSiebenSat.1 proceeds to its shareholders,” Van der Hooven said. “The remainder will be spent on acquisitions.”

TMG’s stock traded 4.4 percent up at 8.85 euros as of 11:31 a.m., giving the publisher a market value of 420 million euros ($561 million).

Hans Elekan, a spokesman for TMG, didn’t immediately return a phone call seeking comment.

To contact the reporter on this story: Martijn van der Starre in Amsterdam at vanderstarre@bloomberg.net

To contact the editor responsible for this story: Mariajose Vera at mvera1@bloomberg.net