Prisa has agreed to sell the business of the Santillana publishing house in Spain to the Finnish company Samona Corporation for 465 million euros, an amount that will be fully paid in cash at the closing date of the transaction, after discounting the net debt at June 30 , estimated at about 53 million.
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Santillana’s private and public activity in Latin America will be excluded from the operation and will continue to be developed by Prisa, indirectly, through the publisher.
Likewise, Santillana will retain ownership of all its brands and an exclusive license agreement will be signed in favor of Sanoma for the use, among other rights, of the “Santillana” and “Loqueleo” brands in the European Union, excluding Portugal, and of the brand “Richmond” in Spain.
Following the sale of the Santillana Spain business, which represents 21% of the Santillana Group’s business, the latter will focus its efforts on promoting learning systems in Latin America.
The operation allows the media company to remove part of the debt slab. The debt refinancing agreement involves extending its maturity until March 2025, with an initial cost of 5.5% and an average total cost of 7% during the life of the contract. It contemplates the amortization of 400 million of debt (with which the total net debt will be cut by more than 30%) and establishes the framework for a future effective separation of the Education and Media businesses. With this refinancing, the company will have around 275 million to reinforce its liquidity and facilitate the development of strategic plans for its businesses, according to a statement.