Clarin to spin off Cablevision into standalone, listed unit

News Broadband Argentina 17 AUG 2016
Clarin to spin off Cablevision into standalone, listed unit
Argentina's largest media group Grupo Clarin said it plans to spin off its majority-owned cable TV and internet access business into a separate listed company to be called Cablevision Holding (CVH).

The plan will be put to a shareholder vote for approval on 28 September, the company said in a statement.

Clarin, which has a 60 percent stake in Cablevision alongside Fibertel, said standalone status as a limited company will benefit CVH, the leading player player in cable TV, in a sector where there are significant opportunities for growth and investment.

The Digital Argentina Act, passed in 2015, spurred competition in the sector by introducing a single licence for ICT services, allowing TV and internet companies to provide telecoms services and opening the broadcast market to telecoms groups.

In April, telecom regulator Enacom authorized Fibertel to transfer its telephony licence to Cablevision and in May approved Telefonica Argentina's request to change its statute allowing it to provide TV services.

Telecom Argentina, majority owned by Mexican financier David Martinez Guzman, also a shareholder in Cablevision, announced plans to launch pay-TV services in March and in June reached an agreement with Netflix to carry its catalogue of movies and TV series.

Guzman said at the time there were no plans to merge Telecom Argentina and Cablevision. 

In March, Cablevision gained approval for its full takeover of Nextel. Argentina’s fourth largest mobile operator.

Categories:

Fixed

Companies:

Cablevision,  Clarin,  Telecom Argentina

Countries:

Argentina

Tags:

Shareholders & subsidiaries, Wireline, Corporate, Cable - Docsis, Internet Access, Corporate strategy, M&A buyouts & divestments

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