BERLIN (dpa-AFX) - Ringier Axel Springer Media AG, a 50:50 joint venture of German print and digital media firm Axel Springer AG (AXELF.PK) and Swiss Ringier AG said Monday that it agreed with Polish media company TVN S.A to acquire 75 percent of shares in TVN's unit Onet.pl S.A.
The purchase price comes to 956.25 million Polish zloty or about 217.5 million euros. The underlying value of the deal amounts to 1.28 billion Polish zloty. The deal is intended to be consummated on January 1, 2013.
According to Ringier Axel Springer, Poland's online portal Onet.pl reaches about 70 percent of the Polish internet users with its offer of news and various services. With this acquisition, the joint venture company intends to expand its digital business.
Florian Fels, CEO of Ringier Axel Springer Media stated, 'The acquisition of Onet.pl is a milestone for our fledgling company, and Onet.pl is an optimal addition to our online portfolio.'
Ringier Axel Springer Media noted that for the implementation of the deal, it will establish a holding company under Polish law, which will acquire 100 percent of the shares in Onet.pl. TVN will hold a 25 percent interest in the holding company.
Regarding the remaining 25 percent of the shares which will stay with TVN S.A., reciprocal call and put options have been agreed upon and the purchase price relating to the options will be calculated based on future results of Onet.pl.
The transaction is still subject to merger clearance by the competent competition authorities, Ringier Axel Springer added.
On Frankfurt's Xetra, Axel Springer shares are currently trading 31.99 euros, down 0.08 percent.
Copyright RTT News/dpa-AFX