Telefónica buys another 1% of Digital+
Written by Iñaki Ferreras
Spain's main telco Telefónica now owns 22% of Sogecable's satellite pay-TV operator Digital+ after buying an additional 1% of the operator. The move was revealed by a report from Sogecable’s owner Prisa sent to stock market regulator, the CNMV.
The operation equals the terms of the contract signed last November 25 between Sogecable and Telefónica through which the operator got 21% of Digital+ for €470 million, of which €240 million was paid in cash.
By means of this operation the telco evens its stake up with that of Mediaset's Telecinco, which at the end of last year signed an agreement with Sogecable to buy 22% of Digital+.
According to newspaper El Mundo, a source from Prisa said in order to be able to work in a "definite and strong way" with the two new partners, the easiest way is to have an equal distribution of shares for both. That was cited as the motivation for Telefónica acquiring another 1% of the satellite pay-TV operator. This way two minor partners coexist on the same level, with Sogecable controlling 56% of the operator.
Finally Telefónica will have the right to name two members of the board of the operator, one of whom will be the vice-president while Prisa will have the right to name the operator's president.