US media group Scripps Networks Interactive has agreed to buy a 52.7% stake in Polish pay-TV broadcaster TVN in a €1.42bn (US$1.5bn) deal.
Scripps will pay French DTH firm Canal+ and Polish media holding ITI Group a total €584m (US$615m) in cash for…
US media group Scripps Networks Interactive has agreed to buy a 52.7% stake in Polish pay-TV broadcaster TVN in a €1.42bn (US$1.5bn) deal.
Scripps will pay French DTH firm Canal+ and Polish media holding ITI Group a total €584m (US$615m) in cash for the stake, and will also assume €840m (US$885m) of the group’s debt.
If the deal is approved by regulators, Scripps will be required under Polish law to launch a public tender offer to further increase its ownership.
It is the latest move in the Tennessee-based company’s European expansion drive, which saw it secure a joint venture with the UK’s BBC Worldwide in 2011 for a portfolio of 10 entertainment and lifestyle channels.
Kenneth Lowe, Scripps’ chairman and CEO, said: “This transaction is an important milestone in the ongoing strategic development of our international business, and provides us with substantial further scale in Europe.
“Poland is a vibrant media market with significant growth potential … The business will be a strong addition to Scripps Networks Interactive, and we’re looking forward to working with the whole TVN team to achieve our significant ambitions in the region together.”
Canal+ and ITI put the stake up for review in October after they were approached by “strategic and financial investors”.
The French firm holds 49% of N-Vision, which owns roughly 51% of TVN. ITI, which holds the rest of N-Vision, also owns a small direct stake in TVN.
Canal+ bought into TVN back in 2012 when it snapped up a 40% stake for about €230m.
Poland is its second largest market after France, and the group said it will continue to hold a strong presence in the country through its 51% share of DTH platform nc+. TVN owns a 32% stake in nc+.
TVN was founded in 1995 and operates three free-to-air and seven thematic pay channels through satellite and cable operators. After N-Vision, its largest shareholders are financial services firms ING, Aviva and PZU.
Scripps is being financially advised by Barclays and Blackstone Advisory Partners. Its legal advisers are Latham & Watkins and Domański Zakrzewski Palinka.
The sellers hired JP Morgan and BofA Merrill Lynch for financial advice. Weil, Gotshal & Manges and Orrick, Herrington & Sutcliffe are their legal advisers.
