Telefonica becomes shareholder of Grupo Prisa
Telefónica has reached an agreement with Spain’s media group Grupo Prisa for which the former undertakes to subscribe convertible bonds worth €100 million in the media group. Prisa owns substantial media assets in Latin America and the U.,S. Hispanic market (including Prisa radio and broadcaster V-Me).
In addition, Prisa has signed an agreement with La Caixa, Banco Santander and HSBC to convert part of its debt into shares for €334 million (US $417 million).
Both agreements are subject to a vote at Prisa’s next Annual General Meeting to be held on June 30.
Telefonica will acquire 97 million Prisa shares, giving it an 8 percent stake in the media company, although this stake will shrink to 5-6 percent when other shareholders convert a series of warrants.
Telefonica's move will help strengthen its strategic alliance with Prisa in broadcasting and could help Prisa's Digital+ channel recover rights to broadcast lucrative Spanish soccer matches, BPI analysts said in a note to clients.
Prisa has been suffering from falling advertising revenue in Spain and Portugal and high financing costs and posted an 8 million euro loss in the first quarter.
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