The first strategic step has been made in the alliance between American fund Liberty and Spain's leading media group, Sogecable subsidiary Prisa.
Liberty Acquisition Holdings Corp's investors approved the necessary agreements to buy into Prisa's capital and Prisa's shareholders will have to ratify this operation by voting at an extraordinary Shareholders Meeting on 27 November.
The operation will mean an injection of €650 million of capital into Prisa and will open the door for the company to be listed on Wall Street Stock Exchange, according to 'El País'. Nevertheless Prisa's shareholders will carry on controlling the company and its current management is also guaranteed.
Liberty assured this operation was approved by 74% of the shareholders and 81% of the warrant's owners.
The Liberty-Prisa operation comes in the frame of Prisa's efforts to inject new capital into its highly indebted company that ended Q3 this year with a debt of €4.686 million. This operation together with the selling of some of Prisa's properties will allow the Spanish group to cut down its debt in almost half.
According to Prisa, the agreement with Liberty will allow it to expand internationally in the US, Brazil, Mexico and the rest of Latin America.
All Liberty's top executives are "very happy" with this agreement because they deeply trust the Spanish company. Now it is Prisa's time to show its strength and capacity.
Said an official statement by Liberty: "This strategic partnership shows the confidence the international markets have in Prisa due to its leadership and ground of its editorial, education, press, audiovisual and digital businesses together of its growth strategy".