Claxson sells off more assets and announces that it may take the company private:
Claxson and Prisa Reach Agreement for the Sale of IberoAmerican Radio Chile
Friday December 22, 4:47 pm ET
SANTIAGO DE CHILE--(BUSINESS WIRE)--Claxson (Pink Sheets:XSONF - News), the multimedia company that provides and distributes branded entertainment content to Spanish and Portuguese audiences around the world, announced today that it has entered into an agreement to sell the shares of its subsidiary, IberoAmerican Radio Chile, S.A., that holds the group of radio networks known as "IberoAmerican Radio Chile," to Grupo Latino de Radiodifusion, an affiliate of Union Radio, owned by Prisa Group.
As a result of this agreement, all the radios of IberoAmerican Radio Chile (Pudahuel FM, Rock & Pop, Corazon, FM Dos, Concierto, Futuro, FM Hit and Imagina) will be owned by Grupo Latino de Radiodifusion. The price for the sale of the radio company is US$ 75MM, minus the financial debt under certain syndicated credit facility held by IberoAmerican Radio Chile, S.A. as of the closing date. Closing of the transaction is subject to regulatory approval by the Anti-trust Tribunal in Chile.
"We are very pleased about this agreement with the Prisa Group. IberoAmerican Radio Chile's management has not only generated excellent results and brand positioning, creating shareholder value, but has also enhanced the Chilean radio industry as a whole. We believe the interest of Prisa Group, who operates radio businesses in different markets, is a recognition to the management of IberoAmerican Radio Chile, with whom I am proud to have worked all these years," said Roberto Vivo, Claxson's CEO & Chairman.
Claxson intends to commence a process to analyze strategic alternatives with respect to its remaining assets, and may consider taking the Company private.
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