New committee ahead of Cuatro/Telecinco merger -
Written by Iñaki Ferreras
Monday, 18 January 2010 10:25
Italy’s Mediaset has sent a group of executives to Spain to create, together with Sogecable’s executives, a commitee to integrate Telecinco with Sogecable's Cuatro.
Prior to Christmas, Sogecable and Mediaset agreed to merge their Spanish companies into one audiovisual holding. With the financial advice of JP Morgan for Telecinco and of Mediobanca for Mediaset, and legal support from Uría & Menéndez lawyers, the companies are creating a committee to pilot the operation. This group will be made up of ten directors of Telecinco with CEOs Paolo Vasile and Giuseppe Tringali and general director Massimo Musolino on the lead as well as five directors of Mediaset.
The integration of Telecinco and Cuatro is undergoing the due diligence process and according to forecasts it will be finished after the authorizations of the National Competition Commission in June. According to the agreement terms, Telecinco will control the management of the merged group and at the same time will integrate Cuatro in Telecinco by exchanging shares. Prisa will have 18.3% of the capital of the new company which will be valued at €2,980 million.
Through this operation Prisa will abandon the free-to-air business in Spain, one of the pillars of its multimedia strategy.
Prisa will also sell 22% of its pay-TV operator Digital+ to Telecinco for €517 million.