Telefónica and PRISA sign the sale of 56% of Canal+ for 750 million

Mediaset España, with 22% of the capital of Canal+, has a period of 15 calendar days from that date to exercise the right of preferential acquisition or the right of accompaniment.

Telefónica has informed the National Securities Market Commission this Monday that its subsidiary Telefónica de SERVICIOS has formalized with Promotora de Informaciones (PRISA) the purchase and sale contract of all the shares of Distribuidora de Televisión Digital (Canal+), of which PRISA is the owner and which represent 56% of the capital of said company. The finally agreed price amounts to 750 million euros, subject to the usual closing adjustments.

The closing of this sale, signed this Monday at Telefónica's headquarters in Madrid, is conditional on obtaining the required authorization from the competition authorities and approval by a representative panel of PRISA's financing banks.
The operator chaired by César Alierta already owns 22% of DTS, so at the closing of the purchase it will control 78% of the property. The other 22% is in the hands of Mediaset España, which has a right of first refusal on the operation.

Juan Luis Cebrián, executive president of PRISA, "this is great news for both PRISA and Telefónica. Some time ago we announced our willingness to sell pay television to concentrate the Group's efforts in the education and information business, with a special focus on growth in Latin America. Our pay television is emblematic for its high quality and I am sure that Telefónica will consolidate its leadership in Spain for the benefit of all its subscribers."

For his part, the president of Telefónica, César Alierta, described the operation as “very positive” and pointed out that it constitutes an important advance in the development of pay television in Spanish. Alierta also explained that “this agreement is a significant step forward in the company's transformation process into a leading digital telco.”

A meeting of the Board of Directors of Canal+ (DTS or Digital Television Distributor) is scheduled this week, which will communicate the terms of the contract to Mediaset España, owner of 22% of the capital of Canal+, which has a period of 15 calendar days from that date to exercise the right of preferential acquisition or the right of accompaniment in accordance with the provisions of the bylaws and the agreement between DTS shareholders.