MADRID, March 5 (Reuters) - Indebted Spanish media company Prisa reached a deal with Liberty Acquisition Group on Friday worth around $900 million for the publisher of El Pais and finalising the debt-refinancing process with its creditors.
According to the complex deal, the U.S. Special Purpose Acquisition Company could acquire up to half of the media company's capital and will be fully absorbed by Prisa.
Prisa's Polanco family, which currently holds a 70 percent stake, will continue to control the group but could see their stake diluted to 30 percent by the agreement.
'Prisa shareholders will see their stake diluted though the reference shareholders will under no circumstance see their stake fall below 30 percent and will not see their control of the company being affected,' it said in a statement.
To keep control of the company, Prisa will make statuary adjustments which include limiting voting rights to 30 percent.
Prisa will also grant minority shareholders, not including the Polanco family, the opportunity to subscribe to a capital hike worth up to 150 million euros ($203.7 million), at 3.08 euros per share.
Prisa's shares closed at 3.295 euros a share.
The Spanish group will be able to list in the United States following the agreement.
(Reporting by Carlos Ruano; Writing by Paul Day; Editing by James Dalgleish) ($1=.7362 Euro) Keywords: PRISA LIBERTY/ (paul.e.day@thomsonreuters.com; Tel + 34 654 21 39 27; Reuters Messaging: paul.e.day.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.
According to the complex deal, the U.S. Special Purpose Acquisition Company could acquire up to half of the media company's capital and will be fully absorbed by Prisa.
Prisa's Polanco family, which currently holds a 70 percent stake, will continue to control the group but could see their stake diluted to 30 percent by the agreement.
'Prisa shareholders will see their stake diluted though the reference shareholders will under no circumstance see their stake fall below 30 percent and will not see their control of the company being affected,' it said in a statement.
To keep control of the company, Prisa will make statuary adjustments which include limiting voting rights to 30 percent.
Prisa will also grant minority shareholders, not including the Polanco family, the opportunity to subscribe to a capital hike worth up to 150 million euros ($203.7 million), at 3.08 euros per share.
Prisa's shares closed at 3.295 euros a share.
The Spanish group will be able to list in the United States following the agreement.
(Reporting by Carlos Ruano; Writing by Paul Day; Editing by James Dalgleish) ($1=.7362 Euro) Keywords: PRISA LIBERTY/ (paul.e.day@thomsonreuters.com; Tel + 34 654 21 39 27; Reuters Messaging: paul.e.day.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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