Providence Equity Partners has reached an agreement with investment company Retos Cartera S.A. to become the largest individual shareholder in the company with a 25.5 percent equity participation.
Retos Cartera announced on Dec. 14 a tender offer for 100 percent of leading Spanish media group Recoletos for a total cash consideration of euro 941 million. The offer is supported by the board of directors of Recoletos and by Pearson plc, which has committed to tender its 78.9 percent stake in the share capital of Recoletos. The terms of the public tender offer have already been approved by the CNMV, Spanish Stock Market Authority, and the acceptance period is set to expire on April 1.
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The group of top executives of Recoletos who led the MBO of Recoletos, headed by Executive Chairman Jaime Castellanos, will continue in their management positions at Recoletos and have become significant shareholders in Retos Cartera.
Recoletos is a Spanish media group with a focus on newspapers, publishing sports daily Marca, which is Spain’s most read newspaper, and Expansion, a business and finance daily in Spain. In addition, Recoletos publishes several magazine titles, including Spanish women’s fashion magazine Telva, national free newspaper Que and has a sports radio network, Radio Marca.
Jaime Castellanos, executive chairman of Recoletos, said in a release: “We are very pleased to have signed this agreement. We are confident that Providence Equity Partners will add significant value to Recoletos, capitalizing on its media and communications expertise.”
John Hahn, managing director of Providence Equity Partners, said: “We are very excited about our investment in Recoletos. Its market leading existing businesses coupled with significant growth opportunities and a world-class management team is the ideal combination to achieve operating and financial success.”
Providence Equity Partners was advised in the transaction by Calyon Corporate and Investment Bank and has also received legal assistance from Linklaters.
Providence Equity is a global private investment firm specializing in equity investments in communications and media companies around the world. The principals of Providence Equity manage funds with more than $9 billion in equity commitments, including Providence Equity Partners V, a $4.25 billion private equity fund, and have invested in more than 80 companies operating in more than 20 countries since the firm’s inception in 1991.
Significant investments include Metro-Goldwyn-Mayer, Warner Music Group, PanAmSat, VoiceStream Wireless, AT&T Canada, eircom, Casema, Kabel Deutschland, Language Line, F&W Publications, ProSiebenSat.1, and Bresnan Broadband Holdings. Providence Equity has offices in Providence, London and New York.
