Last year EM.TV bought 50% of SLEC and agreed an option to buy a further 25% stake which was exercised this year. By this time, however, the smaller company had run into financial trouble and Kirch stepped into rescue EM.TV, netting itself a 16.74% stake in EM.TV and half of EM.TV's holding in the Formula 1 company.
Kirch will now increase its share of the 75% stake in SLEC it jointly owns with EM.TV from 37.5% to 57.5%, giving it a dominant portion. The remaining 25% is owned by Formula 1 boss Bernie Ecclestone.
EM.TV will take a DM 1.3bn (£412.74m) write-down against its original 50% stake in SLEC. In addition. it will take a DM 684m (£217.17m) write-down against its purchase of the Jim Henson Company, creator of the Muppet Show.