Telecinco launches capital increase for Prisa acquisitions

18th November 2010, Comments 0 comments

Spanish television channel Telecinco, controlled by Italy's Mediaset group, launched a capital increase of 499.2 million euros (680 million dollars) on Thursday aimed at acquiring assets of heavily indebted media giant Prisa.

Telecinco will issue 86.8 million new ordinary shares at the price of 5.75 euros, it said in a statement to Spain's stock market regulator.

Spain's competition authority, the CNC, last month gave the green light for Telecinco to buy Prisa's free-to-air channel Cuatro.

On November 10, the CNC also approved its purchase of a 22-percent stake in Prisa's pay-TV unit Digital+.

Both deals were announced in December, 2009.

Telecinco is owned 50.5 percent by the Mediaset group of Italian Prime Minister Silvio Berlusconi.

Prisa owns Spain's leading daily El Pais and other newspapers as well as interests in television, radio and digital platforms in Spain, Portugal and Latin America.

It has been seeking fresh capital since early this year to refinance its debt of nearly 5.0 billion euros.

© 2010 AFP

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