French media giant Altice has reached an agreement to acquire a 94.7% stake owned by Spain’s Prisa in Media Capital, Portugal’s largest media group.
Through this move, Altice will reinforce its leading position in Portugal’s media market, as it is already the second largest pay-TV operator through the MEO and Cabovisao units. Media Capital owns TVI, Portugal’s most-watched free-to-air (FTA) channel, which generates over 60% of the group’s revenues.
According to the information sent by Prisa to Spain’s stock market authority (CNMV), the acquisition values Media Capital at an enterprise value of €440 million. However, both companies have agreed to ink the transaction for €321 million.
By acquiring Portugal’s largest FTA and radio broadcaster, Altice aims to strengthen its global convergence strategy, as it has done in France, the US and Israel.
The Netherlands-based media group has already announced that it will use Media Capital’s Plural as a global content production hub, export Portuguese content to other Altice territories (especially France and the US), invest in digital expansion and develop new TV channels and formats.
The agreement is subject to customary closing conditions including approval by Prisa shareholders and regulatory approval. Altice has also launched a mandatory takeover offer for the remaining 5.3% of Media Capital owned by Spanish bank NCG Banco.
“It is a unique opportunity to invest more capital in a market which has been our home for many years. We want to capture the many growth opportunities Media Capital offers not just in Portugal but also internationally based on an ambitious agenda focused on more digital, more content and more innovation,” said Michel Combes, CEO of Altice.