December 3, 2020

Prisa rejects Blas Herrero’s offer for El País and SER



The board of directors of Prisa has decided to reject the offer made by businessman Blas Herrero for the company’s media division, which includes the newspaper El País and Cadena Ser. The offer had few prospects to prosper since several shareholders had declared that the valuation of the assets made by the Asturian businessman was well below the market price.

Herrero, owner of the Kiss FM radio chain, sent a letter proposing the creation of “a limited liability company” in which a group of investors led by him “would have a significant stake, but not necessarily control” , and the current shareholders of the Spanish communication group could “participate in the capital of said company by making, like the aforementioned group of investors, monetary contributions to its share capital”.

After learning about Herrero’s offer, which sent a letter to the Prisa board of directors, several shareholders explained to elDiario.es that the proposal from the owner of Kiss FM was too low. Sources related to shareholders showed their surprise at the little money offered, about 150 million euros, when “only the radios in Latin America are worth about 100 million. A newspaper like El País cannot be sold for less than 150 million. We received an offer for 50 million only for 70% of the Colombian station, Radio Caracol “.

Other shareholders recalled that the company has carried out two capital increases (in 2018 and 2019) and that a refinancing has just been closed, so they do not want to know anything about offers “that do not reach 500 million euros.”

The media and education company has sent a relevant fact to the CNMV in which it assures that “it will continue to operate in accordance with its roadmap defined at the beginning of this year, in the development and enhancement of its education and media projects. Communication”. The CEO of Prisa, Manuel Mirat, explained at the last General Shareholders’ Meeting that the company was considering making a split between its Education divisions, where the Santillana publishing house is located, and the media.

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