French group Canal+ announced a final agreement to acquire 40 percent in N-Vision from Polish holding company ITI for EUR 230 million. N-Vision is the parent company of Polish Television Holding, which owns 51 percent of the Polish broadcaster TVN Group. Under the terms of the deal, Canal+ and TVN will merge their Polish satellite pay-TV businesses, namely Cyfra+ and Platform 'n' in a joint venture. The majority stake of 51 percent in the new satellite TV platform will go to Canal+, TVN will own 32 percent, and UPC Poland will hold 17 percent. The new satellite platform will have 2.5 million customers and is expected to generate PLN 350 million in synergies, principally through cost savings and increased revenues, within three years of its formation. The new company will target 3 million customers and annual EBITDA of PLN 550 million by the end of 2015. The new pay-TV platform will also cooperate with TVN on content production. Canal+ will have the option to buy 32 percent in the new pay-TV company from TVN three or four years after closing of the deal. If Canal+ does not exercise its option to buy this stake, TVN can sell its stake through an initial public offering of shares in the new company four years after closing. The new satellite platform will be 100 percent consolidated by the Canal+ Group. ITI will continue to own 60 percent of N-Vision and has an option to sell 9 percent of its stake in N-Vision to Canal+ two years after closing the deal. Canal+ has the option to purchase the rest of ITI's stake in N-Vision 3-4 years after closing. The Canal+ Group and ITI agreed rights to withdraw completely if Canal+ does not exercise its option to purchase shares in TVN from ITI. The transaction is expected to close in H2 2012, pending regulatory approval.
