On Friday, Prisa (PRS.MC) said that its second-largest stakeholder, Vivendi (VIV.PA), had received the Spanish government’s approval to increase its interest in El Pais’ publisher.
Prisa announced that the Spanish government had authorized Vivendi to convert its February convertible notes into stock.
Spain implemented a rule in 2020 requiring foreign corporations to get clearance to purchase major shares in Spanish-listed companies.
Prisa sold 130 million euros ($143 million) of convertible bonds to lower its debt.
If Vivendi were the only bondholder to convert its bonds into equity, Prisa stated its holding would grow to 15%.
According to Refinitiv statistics, if Vivendi and other convertible bond holders converted all their bonds, the French business would own 10.9% of Prisa, up from 9.51%.
In late 2021, Vivendi requested to increase its interest in Prisa from 9.94% to 29.9% to expand into Spanish-language markets in Europe, Latin America, and the US.
Vivendi abandoned its request months later.
Vivendi bought 7.89% of Prisa from HSBC for 52 million euros ($57.25 million).
Amber Capital, led by French investor Joseph Oughourlian, owns 29.57% of Prisa, according to Refinitiv Eikon.
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