Telecom incumbent Telefonica has upped its stake in Prisa’s satellite pay-TV operator Digital + by 1%, taking its total interest up to 22%.
The transaction puts Telefonica on an equal footing with Mediaset’s Telecinco, which agreed to buy 22% of Digital…
Telecom incumbent Telefonica has upped its stake in Prisa’s satellite pay-TV operator Digital + by 1%, taking its total interest up to 22%.
The transaction puts Telefonica on an equal footing with Mediaset’s Telecinco, which agreed to buy 22% of Digital + in December.
Both minority owners will have the right to name two board members.
The operation was carried out on the same terms by which Telefonica bought 21% of Digital + for E470m in November, Prisa said in a statement to the stock market regulator CNMV.
Sogecable, itself wholly owned by Prisa, controls the remaining 56% of Digital +.
Last December, Mediaset agreed to merge Telecinco with Prisa’s loss-making free-to-air channel Cuatro for an equity consideration of E550m. As part of the deal, the enlarged Telecinco would acquire 22% of Digital + for E500m in cash. This would be financed through a E500m capital increase, fully subscribed by Mediaset (50.5%) and underwritten by a pool of banks led by Mediobanca and JPMorgan.
The operation still awaits regulatory clearance and is expected to close in Q3.
JPMorgan and Mediobanca advised Mediaset while Allen & Co were exclusive advisers for Prisa.