Sonaecom and Zon Multimedia merger?
September 24, 2012
From Branislav Pekic in Rome
The shares of Portuguese multimedia company Sonaecom and pay-TV operator Zon Multimedia have risen by over 8 per cent on the Lisbon Stock Exchange after a senior executive said a merger would be good for both companies.
Speaking to Reuters, the Deputy CEO of Sonaecom, Miguel Almeida, said the merger “makes sense” and “adds market value” for shareholders, as it would create a “more complete operator” with a strong market position. He added that the merger has become more probable following the entry of Angolan businesswoman Isabel dos Santos as a 28.8 per cent shareholder of Zon.
Portuguese daily Sol had reported earlier that the merger between Sonaecom and Zon Multimedia could take place before the end of the year, citing sources close to the talks. For its part, Portuguese investment banking group BES Investimento claims that the merger is the “most logical scenario”.
Sonaecom owns mobile operator Optimus (20.1 per cent market share), while Zon Multimedia is Portugal’s largest pay-TV operator with a 53 per cent market share (1.59 million subscribers at the end of June).
A merger between Zon Multimédia and Sonaecom has been rumoured since 2008 and would create a company with a stock exchange value of around €1.25 billion.