MADRID (Reuters) – Spanish media company Prisa said it would Vivendi (EPA:), its second shareholder, has obtained the go-ahead from the Spanish government to increase its stake in the group, publisher of the El Pais newspaper.
The Spanish government has authorized Vivendi to convert the Prisa bonds purchased in February into equity, according to a Prisa statement.
In 2020, Spain passed a law requiring foreign companies to apply for authorization to purchase major stakes in listed Spanish companies.
Heavily indebted Prisa had sold €130m worth of convertible bonds in a bid to reduce debt.
According to Prisa, if Vivendi were the only bondholder to convert the bonds into shares, its stake would rise to 15%.
If Vivendi and all other convertible bondholders were to convert all of their bonds, the French group would end up with around 10.9% of Prisa, up from 9.51% currently, according to data from Refinitiv.
No comment from a Vivendi spokesperson.
(Translated by Chiara Scarciglia, editing by Sabina Suzzi)