Chile's Canal 13 goes public to finance digital transition
Juan Fernandez Gonzalez | 04-11-2013
Chile's free-to-air channel Canal 13 has been given permission to take the company public, after a long decision process. The channel will invest 40% of the amount raised in the country's digital transition.
In February, the company asked Chile's stock market regulator, Superintendencia de Valores y Seguros, for permission to take the company public with an initial value of $40 million for 30% of the company, according to La Tercera and El Economista. Currently, the channel is owned in a 67% by businessman Andrónico Luksic and 33% by the Pontifical Catholic University of Chile (PUC).
The company needs to make a massive investment in equipment and technology to complete digital transition in Chile. The process has already started, specifically with regard to content production, but by investing 40% of the money raised by selling shares it will be possible to finish the project.
The rest of the money will be invested in a development plan, which, among other things, includes HD adaptation and possible acquisitions in the telecom field in Chile and Latin America.
Canal 13 will issue 100 million shares for a total value of $40 million. In its latest financial report, the company announced it had increased its earnings 32.4% since 2012.