Portugal: Zon Multimedia and Optimus to merge

Portuguese multimedia company Sonaecom and Kento/Jadeium – owned by Angolan businesswoman Isabel dos Santos – have reached an agreement on the merger of telecommunications operator Optimus and pay-TV operator Zon Multimedia.

Dos Santos is the biggest shareholder of Zon Multimedia, owning 28.8 per cent, while Sonaecom controls 100 per cent of Optimus.

Total revenues at Optimus in 2011 reached €754.7 million, while Zon Multimedia’s revenues from pay-TV, broadband and voice services (MVNO and fixed) amounted to €757.9 million. In terms of market value, Zon has a market capitalisation of €870 million, while Sonaecom is worth €565 million.

As a result of the deal, Optimus will be incorporated into Zon Multimedia and the new company will be equally owned by Sonae and Isabel dos Santos. Portugal’s Competition Authority will have to decide on the operation and a decision is not expected before February 2013.

According to analysts, the merger, which could be completed by July 2013, could generate synergies of between €300-€500 million. Zon Multimedia already has over 50 per cent of the local pay-TV market and, following the merger, would also have 37 per cent of the fixed broadband market in Portugal.

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