Telecinco, Spain’s largest commercial television station, has said it will raise €499 million to finance the purchase of a stake in pay-TV company Digital Plus.
Telecinco will offer investors 5 new shares for every 14 owned at €5.75 each, the Madrid-based broadcaster said in a regulatory filing. Parent Mediaset will take up its rights, Telecinco said.
Telecinco is buying 22 per cent of Digital Plus from Prisa, and has also agreed to purchase free-to-air channel Cuatro from the media company. To pay for Cuatro, Telecinco will give Prisa new shares mounting to an 18 per cent stake in the company. The details of the second capital increase have yet to be disclosed.