MEXICO CITY (AFX) - Grupo Televisa said Wednesday it plans to sell its 11.4 percent stake in Univision Communications Inc. after a consortium of private-equity investors beat the Mexican broadcaster's bid for the Los Angeles-based Spanish-language network.
In a news release, Televisa said the sale of its shares will allow it to find new business opportunities in the expanding U.S. Hispanic market.
Last week, Univision said it had accepted an offer from a group of investors, headed by billionaire Haim Saban, which bid $36.25 (euro28.33) a share for the company. The group will pay $12.3 (euro9.6) billion and assume $1.4 (euro1) billion in debt.
The move apparently rankled Televisa, which provides much of the popular programming that has made Univision the dominant Spanish-language TV network in the U.S.
In a letter that was filed with the Securities and Exchange Commission, Grupo Televisa said it was prepared to discuss the sale of its shares based on the current per-share price as set out in the merger agreement.
It also said the group won't deliver a conversion notice and none of its shares of Univision will be rolled over as contemplated by the merger deal between Univision and the proposed buyer.
Televisa said it plans to sell its holdings at $36.25 (euro28.33) a share and that if the holdings fell below a certain level, it would no longer be bound by a 1996 participation agreement. In U.S. trading Wednesday Univision shares fell 1.03 percent to US$33.58 (euro26.25), while Grupo Televisa sank 4.25 percent to $19.59 (euro15.31).
Televisa also said that if its Univision holdings fell below a certain level, it would no longer be bound by a 1996 participation agreement.
'If it is not bound by the participation agreement, Televisa will be able to engage in new business opportunities in the growing U.S. Hispanic marketplace relating to its programming or otherwise without offering Univision participation in such opportunities,' Televisa said in a statement.
The consortium buying Univision also includes Texas Pacific Group Inc., Thomas H. Lee Partners, and Madison Dearbon Partners LLC, and Providence Equity Partners Inc.
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