MADRID, Feb 23 (Reuters) - Shares in Spain's largest media company Prisa were suspended from trading on Tuesday after a report a group of U.S. funds was about to invest up to 725 million euros ($991 million) in the indebted company.
Spain's stock exchange regulator suspended the shares at 0753 GMT, saying there were 'circumstances which could affect the normal course' of trading.
A spokeswoman for Prisa declined to comment on the suspension or on the report on El Confidencial, a financial website, that a group of 30 U.S. funds and a few shareholders had agreed to buy into the company, cutting the stake of the founder Polanco family to 35 percent from 70 percent.
Prisa, the owner of Spain's bestselling newspaper El Pais and other media businesses such as radio stations in Latin America, has been looking to sell assets and restructure its 5 billion euro debt, which is about six times its earnings before interest, taxes, depreciation and amortization (EBITDA). It has a market capitalisation of about 778 million euros.
Last week, Prisa said it was still in talks with potential investors to strengthen its capital structure, was finalising a deal with creditor banks to restructure its debt and might sell certain assets as part of that process.
Citing financial sources close to the deal, El Confidencial said the U.S. investors had agreed to let the Polanco family continue to run the firm.
The website said the imminent arrival of fresh capital explained why banks had agreed to extend a 1.9 billion euro bridge loan, due for payment in March, to 2013.
Prisa said on Monday the bridge loan rollover was in the process of being agreed by a second group of banks with which it had a syndicated loan.
On Monday, Prisa shares closed flat at 3.55 euros.
(Reporting by Sarah Morris and Robert Hetz; Editing by Sharon Lindores)
($1=.7314 Euro) Keywords: PRISA/STAKE (sarah.morris@reuters.com; +34 91 585 8328; Reuters Messaging sarah.morris.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Spain's stock exchange regulator suspended the shares at 0753 GMT, saying there were 'circumstances which could affect the normal course' of trading.
A spokeswoman for Prisa declined to comment on the suspension or on the report on El Confidencial, a financial website, that a group of 30 U.S. funds and a few shareholders had agreed to buy into the company, cutting the stake of the founder Polanco family to 35 percent from 70 percent.
Prisa, the owner of Spain's bestselling newspaper El Pais and other media businesses such as radio stations in Latin America, has been looking to sell assets and restructure its 5 billion euro debt, which is about six times its earnings before interest, taxes, depreciation and amortization (EBITDA). It has a market capitalisation of about 778 million euros.
Last week, Prisa said it was still in talks with potential investors to strengthen its capital structure, was finalising a deal with creditor banks to restructure its debt and might sell certain assets as part of that process.
Citing financial sources close to the deal, El Confidencial said the U.S. investors had agreed to let the Polanco family continue to run the firm.
The website said the imminent arrival of fresh capital explained why banks had agreed to extend a 1.9 billion euro bridge loan, due for payment in March, to 2013.
Prisa said on Monday the bridge loan rollover was in the process of being agreed by a second group of banks with which it had a syndicated loan.
On Monday, Prisa shares closed flat at 3.55 euros.
(Reporting by Sarah Morris and Robert Hetz; Editing by Sharon Lindores)
($1=.7314 Euro) Keywords: PRISA/STAKE (sarah.morris@reuters.com; +34 91 585 8328; Reuters Messaging sarah.morris.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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