Altice agrees $440m deal to buy stake in content firm Media Capital

Ausiliatrice Cristiano
Luglio 16, 2017

Altice has agreed to buy Media Capital, a Portuguese media group with audience leadership positions in both TV and radio.

Dutch operator Altice has struck a deal to buy a 94.7% stake in Portuguese TV and radio firm Media Capital from Prisa for €440 million.

The acquisition values Media Capital at an enterprise value of €440 million, subject to customary debt, debt-like and working capital adjustments, and is expected to be immediately accretive to Altices operating free cash flow before taking into account any benefits of the transaction. In addition, Media Capital Digital's portal IOL is the second-largest national internet gateway. Closing of the acquisition is subject to customary closing conditions including approval by Prisa shareholders and regulatory approval.

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.

Portugal is already home to Altice's global technology hub, Altice Labs. Following the consummation of the mandatory takeover offer, Altice intends to delist Media Capital from Euronext Lisbon.

Altice CEO Michel Combes declined to comment on recent criticism of PT's 2015 privatisation by Prime Minister Antonio Costa who said he was concerned that Altice would break up and sell parts of the telecom, which could lead to mass layoffs.

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

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