Televisa Inks Spanish Equity Swap

Mexico’s Televisa has agreed to swap its 40.8% participation in Spain’s national broadcaster La Sexta for 14.5% of Spanish media holding company Imagina. The transaction will involve an equity stake swap with no money changing hands, Televisa says. Under the deal, Televisa will have the right to name 2 directors to Imagina’s 12-member board as well as participate with Imagina on joint content production projects. The deal also gives Televisa certain rights of first refusal to buy content and transmit sporting events. The transaction comes as Spain’s Antena 3 broadcaster moved to acquire La Sexta in a stock deal that would give La Sexta shareholders 7% of Antena 3, with an additional stake of up to 7% over a 5-year period subject to certain conditions. Televisa said that it will not receive Antena 3 stock given that its swap agreement contemplates surrendering its stake and rights to Imagina. A Televisa official could not immediately offer more details in terms of valuation of the assets swapped or which entities advised the companies. To advise on its own transaction, Antena 3 retained Morgan Stanley and Nomura, Deloitte and Ernst & Young as financial advisors, as well as law firms Clifford Chance and Ramon y Cajal. La Sexta hired Citigroup, KPMG and Ecija Abogados.