Altice expands in Portugal with acquisition of Media Capital

Nieuws Video Portugal 14 JUL 2017
Altice expands in Portugal with acquisition of Media Capital

Altice has agreed to buy Media Capital, a Portuguese media group with audience leadership positions in both TV and radio. The deal values Media Capital at EUR 440 million, and is expected to be immediately accretive to Altice's operating free cash flow. The transaction still has to be greenlighted by the seller Prisa's shareholders and obtain the usual regulatory approvals.

The deal comes in line with Altice's global convergence strategy, to invest in both telecom networks and media content. The company already acquired in 2015 Portuguese incumbent operator PT Portugal, which rivals Nos for the top position in the telecom market.

The broadcaster owns the leading free-to-air commercial channel TVI, as well as news channel TVI24, TVI Ficcao (local drama), TVI Africa (for Angola and Mozambique), TVI Reality (reality shows) and TVI Internacional, and is also the second-largest radio group in Portugal, including the audience leader Radio Comercial. In addition, Media Capital Digital's portal IOL is the second-largest national internet gateway.

Altice said it is committed to continuing Media Capital's open platform in the Portuguese market. The deal may raise opposition from rivals or regulators, following a battle in recent years in Portugal over exclusive access to sports content and carriage costs for FTA channels. 

The company plans to use Plural, a Portuguese content producer owned by Media Capital, as a global content production hub and to export Portuguese content to other Altice territories, especially to France and the US. Altice already uses Portugal as a hub for development, with Altice Labs. 

Altice said it will invest in digital expansion and Portuguese content, develop new TV channels and formats and enhance their reach, and launch new and innovative services.

Under the acquisition agreement, Altice will buy a 94.7 percent in the media group from Promotora de Informaciones (Prisa). In accordance with Portuguese securities law, Altice has launched a mandatory takeover offer for the remaining 5.3 percent of Media Capital not owned by Prisa. After that, Altice will delist Media Capital from Euronext Lisbon.

Media Capital reported 2016 revenues at EUR 174.0 million and EBITDA at EUR 41.5 million.

Categories:

Video,  Internet

Companies:

Prisa,  Altice Europe

Regions:

Wereld

Countries:

Portugal

Tags:

Production planning & operations, Corporate strategy, M&A buyouts & divestments

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