Prisa will regain full control of Santillana

Prisa will regain full control of Santillana

The group of communication will invest 312 million to acquire 25% of the publishing house that has Victoria Capital Partners

   Prisa will regain control of Santillana. The group informed the National Securities Market Commission (CNMV) of the agreement for the acquisition of 25% of the publisher that is currently owned by Victoria Capital Partners. In this way, it will control 100% of the education group. The operation, subject to the approval of the Spanish competition authorities, "occurs at a time when there are very good growth prospects for the education sector," Prisa said in a statement. "It will represent a great potential for increased value for shareholders and will substantially improve cash generation," he adds.

  The amount of the transaction, which is expected to be completed in April, amounts to 312.5 million, which will be paid in cash to the seller, on the closing date of the transaction. Likewise, Santillana will pay Victoria Capital Partners the preferred dividend corresponding to its shares for the year 2018 and for the corresponding part of this year until the closing date. The funds for this payment are owned by Prisa and come from a capital increase with a preferential subscription right in the amount of 200 million.

Banco Santander has undertaken to ensure this capital increase up to a maximum amount of 200 million euros, subject to the usual terms in this type of document. In addition, shareholders representing 42% of the capital stock have already indicated to the company their intention to participate in the capital increase.

«Given the good prospects for business growth, the acquisition of 25% of Santillana de Victoria Capital Partners will maximize the value of the asset, increase the cash generation of the group by eliminating the annual preferred dividend of 25.8 million dollars (about 22.6 million euros) and to make the financial structure of the company more flexible ", says the company, whose strategy is based on" creating a great transversal, unique and global project of education, entertainment and information ".