Grupo Prisa Sells Stake
March 10, 2010 at 4:29 AM (PT)
LIBERTY ACQUISITION HOLDINGS CORP. has purchased a stake in GRUPO PRISA, the parent company of GRUPO LATINO RADIO, in a deal involving a 150 million euro rights issue to current PRISA shareholders. LIBERTY, unrelated to the LIBERTY MEDIA involved with SIRIUS XM RADIO, is giving PRISA access to up to $900 million in cash, subject to redemptions by LIBERTY public shareholders, in exchange for newly issued PRISA shares and newly issued class A ordinary shares and convertible non-voting shares in PRISA, which will be issued directly to LIBERTY's shareholders in exchange for their LIBERTY shares. After the deal is completed, LIBERTY's shareholders and warrantholders will comprise over 50% of PRISA's shareholder base on a fully diluted basis.
"LIBERTY's investment in PRISA demonstrates their strong belief in the underlying value of GRUPO PRISA's market-leading positions in educational publishing, press, audiovisual and digital, and in our strategy for growth," said GRUPO PRISA Chairman of the Board IGNACIO POLANCO.
"The combination with LIBERTY will allow PRISA to optimize the deleveraging of its balance sheet, and will facilitate the completion of previously announced asset sales," said GRUPO PRISA CEO JUAN LUIS CEBRIAN. "As a result of the transaction and of the EUR150 million rights issue offered to our current shareholders, PRISA believes it will emerge in a stronger position to pursue growth opportunities in its core businesses in Spanish and Portuguese-speaking markets around the world."
"PRISA is a global media company with market-leading businesses and a robust portfolio of brands that are widely recognized by Spanish and Portuguese speakers all around the world," said LIBERTY CEO NICOLAS BERGGRUEN. "We believe that this combination will help PRISA to complete its financial restructuring plan and positions it for growth over the next few years."
"PRISA has a strong management team in place that has skillfully diversified its media and content offerings across press, television, radio and education, and is developing digital platforms that will solidify the company's leadership position in its core markets," added LIBERTY Chairman of the Board MARTIN E. FRANKLIN. "We are confident in PRISA's potential to increase its digital market penetration, to leverage its print and broadcast content and to accelerate its revenue growth in LATIN AMERICA."