La Sexta & Antena 3 Firm Up Merger Agreement

MADRID: After two years of talks, the Spanish broadcasters Antena 3 and La Sexta have agreed to a merger deal, pending regulatory approval.

The deal sees the smaller La Sexta absorbed into the Antena 3 Group. Shareholders of La Sexta will receive 7 percent of the newly formed group, with an additional 7-percent maximum in a graduated manner and subject to the achievement of a series of targets linked to the results of the new group in the 2012-2016 period. Televisa agreed to swap its 40.8-percent stake in La Sexta for 14.5 percent of Imagina, which is already a shareholder in La Sexta. Its stake will increase Imagina’s stake in La Sexta to 92 percent. The move comes a year after Mediaset-owned commercial broadcaster Telecinco acquired smaller rival Cuatro in December 2010.

The deals rest on regulatory and competition approval. Antena 3 intends to submit the operation for approval at its next Ordinary General Shareholders’ Meeting, to be held in the first quarter of 2012.