Spain’s Prisa and US group Liberty in €650-million deal
29 Nov 2010
Spanish media giant Grupo Prisa and US holding company Liberty Acquisitions Holding Corp have sealed a €650-million ($860 million) deal, under which Liberty's investors will become shareholders of Prisa, whose stock will now be traded on the New York Stock Exchange.
The deal was approved on Saturday by the shareholders of Prisa, owners of El Pais daily and 40 Principales music station, following last week's majority support for the transaction by Liberty's shareholders at a meeting in New York.
Under the terms, Prisa will acquire 100-per cent of Liberty through an in kind capital increase with a share swap, through which Prisa will obtain €650 million in cash and Liberty's investors will become shareholders in the group, Prisa said in a statement.
Prisa shareholders will be entitled for 1.1 new ordinary shares for each share they own at a price of €2 per share. These subscription rights can be traded on the Madrid Stock Exchange for the next 42 months.
Madrid-based Prisa is the world's leading Spanish and Portuguese language business group engaged in radio and television broadcasting, publications, and entertainment.
The media group has presence in 22 countries with a reach of over 50 million through its global brands El Pais, 40 Principales, Santillana, and Alfaguara.
The group employs nearly 15,000 people, and its operating revenue for 2009 was €3.2 billion.
