Mediaset, the Italian broadcaster owned by Silvio Berlusconi, announced its plan to establish a new holding company that will serve as the parent company to Mediaset Italy and Mediaset Spain.

Based in the Netherlands, MediaForEurope (MFE) will control 100 percent of both the Italian and Spanish businesses, including the recently acquired 9.6 stake in ProSiebenSat.1. Operational and production activities will continue to remain in their respective countries.

Mediaset’s chief executive Pier Silvio Berlusconi stated, “It is with great satisfaction that we can announce the creation MediaForEurope which aims to create value and development and to become the home of a great European broadcaster.”

He added, “It will be an administratively complex operation but, from the outset, will provide many evident advantages for the shareholders who follow us. We have already identified an annual 107 million euro in synergies and savings that will be achieved by 2023, something that, regardless of market performance, will be an advantage for all shareholders. In addition, MediaForEurope, once completed, will effect a share buy back for 280 million euro and by the end of 2019 will distribute a dividend of 100 million euro.”