August 17, 2022

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The Business man

UPDATE 2-Spanish businessman Herrero bids for PRISA’s El Pais, other media property

* Bidders say PRISA shareholders could keep stakes

* Herrero and partners did not reveal worth of bid

* New stories mentioned Herrero would offer around 200 mln euros

* PRISA shares surged 15{b84e1aa8c29d58b2a8c9372c42385ab668ba841c03c857d88799274ff7fb2c65} immediately after it verified bid (Recasts with PRISA statement)

MADRID, Nov 19 (Reuters) – Financial debt-laden Spanish media agency PRISA reported on Thursday it experienced acquired an offer you for El Pais day-to-day and its other media assets from Spanish businessman Blas Herrero, driving up its share price tag.

PRISA did not specify how a lot Herrero and his unknown partners made available for the media property, whilst it reported PRISA shareholders could preserve stakes in the new media business.

Information website El Confidencial and fiscal newspaper Growth experienced claimed Herrero, who owns radio station Kiss FM, and Spanish companions planned to give extra than 200 million euros ($236 million) in funds to acquire PRISA’s newspapers and its radio and Tv set stations.

Adhering to the stories, the stock industry regulator suspended investing of PRISA shares on Thursday early morning. The share rate jumped practically 15{b84e1aa8c29d58b2a8c9372c42385ab668ba841c03c857d88799274ff7fb2c65} when buying and selling resumed just after PRISA confirmed it had been given a bid.

With web debt of 1.1 billion euros at the conclude of September, PRISA is struggling from dwindling spending on common media promoting, exacerbated by the coronavirus pandemic.

PRISA, with a industry capitalisation of about 510 million euros, also owns Cadena Ser radio station and Cinco Dias economic newspaper.

Soon after restructuring its credit card debt, PRISA announced final month the sale of the Spanish division of its instruction editorial team Santillana to Finnish team Sanoma Company for 465 million euros.

PRISA’s key shareholders are activist fund Amber Capital with 29.84{b84e1aa8c29d58b2a8c9372c42385ab668ba841c03c857d88799274ff7fb2c65}, HSBC with 9{b84e1aa8c29d58b2a8c9372c42385ab668ba841c03c857d88799274ff7fb2c65} and Santander and Mexican billionaire Carlos Slim’s Grupo Carso, both with all over 4{b84e1aa8c29d58b2a8c9372c42385ab668ba841c03c857d88799274ff7fb2c65}.

Spanish telecom company Telefonica has whittled down its stake in Prisa to 9.4{b84e1aa8c29d58b2a8c9372c42385ab668ba841c03c857d88799274ff7fb2c65} from the 13{b84e1aa8c29d58b2a8c9372c42385ab668ba841c03c857d88799274ff7fb2c65} it owned in 2016. A resource common with the make any difference mentioned the telecoms group desired to provide its stake, but has made obvious it would not be willing to do so at a rock-bottom value.

PRISA has missing fifty percent of its current market worth this yr.

In the first 9 months of the calendar year, PRISA’s internet reduction widened to 209 million euros from 110 million euros in the exact period of time a yr ago. Its shares shut at .719 euros on Wednesday.

$1 = .8459 euros Reporting by Emma Pinedo and Jose Elias Rodriguez, supplemental reporting by Belen Carreño, Isla Binnie Composing by Inti Landauro Modifying by Ingrid Melander