From Radio and Records-
Univision Accepts Saban Capital Group's $12.3 Billion Offer
The investor group led by media billionaire Haim Saban offered $36.25 per share for Univision, which is 75 cents per share more than the offer they made last week and 50 cents per share more than Televisa's offer. Univision accepted the offer last night. The price is 13% more than what UVN shares closed at Monday — $32.03, down 92 cents, or 2.79%.
The buyers group, which includes Madison Dearborn Partners, Providence Equity Partners, Texas Pacific Group and Thomas H. Lee Partners LP, will also assume $1.4 billion in debt accrued by the nation's largest Hispanic broadcaster.
Univision, based in Los Angeles, is comprised of 69 radio stations in 16 of the top 25 U.S. Hispanic markets including Los Angeles, New York, Miami, San Francisco/San Jose, Chicago, Houston and others, along with four stations in Puerto Rico. It also owns two television networks, Univision and TeleFutura, with about an 80% share of the fastest-growing U.S. television market.
The selling price falls short of the $40 per share Univision envisioned when it put itself on the market in February, but appears to be the reality of a bumpy media market and too few offers. Only Grupo Televisa submitted another bid — $35.75 per share — which came days after the deadline. That bid was riddled with complexities including concerns about whether too much foreign ownership might run afoul with federal authorities.
"It was less than we thought they were willing to accept going into the first round," David Bank, an RBC Capital Markets analyst in New York, told Bloomberg News. Bank rates UVN shares as "outperform." "The price was a function of lower expectations. Market conditions have been volatile."
Univision shares rose $1.15, or 3.49%, to $34.10 just before 9am in early New York Stock Exchange trading.
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Univision Accepts Saban Capital Group's $12.3 Billion Offer
The investor group led by media billionaire Haim Saban offered $36.25 per share for Univision, which is 75 cents per share more than the offer they made last week and 50 cents per share more than Televisa's offer. Univision accepted the offer last night. The price is 13% more than what UVN shares closed at Monday — $32.03, down 92 cents, or 2.79%.
The buyers group, which includes Madison Dearborn Partners, Providence Equity Partners, Texas Pacific Group and Thomas H. Lee Partners LP, will also assume $1.4 billion in debt accrued by the nation's largest Hispanic broadcaster.
Univision, based in Los Angeles, is comprised of 69 radio stations in 16 of the top 25 U.S. Hispanic markets including Los Angeles, New York, Miami, San Francisco/San Jose, Chicago, Houston and others, along with four stations in Puerto Rico. It also owns two television networks, Univision and TeleFutura, with about an 80% share of the fastest-growing U.S. television market.
The selling price falls short of the $40 per share Univision envisioned when it put itself on the market in February, but appears to be the reality of a bumpy media market and too few offers. Only Grupo Televisa submitted another bid — $35.75 per share — which came days after the deadline. That bid was riddled with complexities including concerns about whether too much foreign ownership might run afoul with federal authorities.
"It was less than we thought they were willing to accept going into the first round," David Bank, an RBC Capital Markets analyst in New York, told Bloomberg News. Bank rates UVN shares as "outperform." "The price was a function of lower expectations. Market conditions have been volatile."
Univision shares rose $1.15, or 3.49%, to $34.10 just before 9am in early New York Stock Exchange trading.
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