Telefonica has moved a step closer to acquiring DTH broadcaster Distribuidora de Television Digital, better known as Canal+, from Prisa after the two parties executed the deal following board approval.
Italian group Mediaset, which owns the final 22% of…
Telefonica has moved a step closer to acquiring DTH broadcaster Distribuidora de Television Digital, better known as Canal+, from Prisa after the two parties executed the deal following board approval.
Italian group Mediaset, which owns the final 22% of Canal+, now has 15 calendar days to exercise its right of first refusal or co-sale rights, according to Prisa.
The final price agreed was €750m (US$1.02bn) for Prisa’s 56% stake in the pay-TV operator, which gives Telefonica a 78% stake in Canal+.
The two companies agreed a takeover in principal in early May, although the initial price was lower at €725m.
The transaction is subject to approval from Prisa’s creditor banks and the competition authorities.
Spain’s number three mobile operator Orange has already complained about the deal. The telco reportedly urged antitrust and telecoms regulator CNMC to veto the takeover, or impose significant remedies. Orange has said the deal would give Telefonica an 80% market share of pay-TV content in Spain.
Cesar Alierta, CEO and executive chairman of Telefonica, described the transaction as “very positive” and said it was an important step in the development of pay-TV in the Spanish language. Alierta also said the deal was “a significant step forward in the process of transforming [Telefonica] into a leading digital telco”.
Canal+ has 1.6 million subscribers and generated €1.16bn in total revenues for 2013, and €28m EBITDA.
