PRISA and Telecinco sign deal on Cuatro merger and the acquisition of a 22% stake in Digital+

- PRISA will receive newly issued shares in Telecinco (non-monetary) to be equivalent to approximately 18.337% of the shares in Telecinco, as well as 491.128 million euros in cash.

- Telecinco plans to carry out a capital increase of around EUR 500 million. Shareholders have pre-emptive rights to subscribe to the new shares.
 
Telecinco and PRISA, together with Mediaset and Sogecable, today signed a framework deal aimed at establishing the procedure, timing and other terms that the parties will execute regarding the merger of Sogecable's free-to-air TV station Cuatro, and Telecinco's acquisition of a 22% stake in Digital+.

Following on from information provided to the markets on December 18, 2009, and in order to finance the operation and strengthen its balance sheet, Telecinco plans to carry out a monetary capital increase of approximately 500 million euros, with preferential subscription rights. PRISA will receive, directly or through its subsidiaries, newly issued shares in Telecinco (non-monetary) that, after the capital hike, will be equivalent to 18.337% of the share capital of Telecinco, as well as a further 491.128 million euros in cash.

Also, as of today signed the parties agreed on the following:

- Contract of sale of shares in DTS Distribuidora de Televisión Digital, SA between Telecinco, PRISA and Sogecable.

- Contract for merger between Telecinco, PRISA and Sogecable.

- Digital+ shareholders' agreement between Sogecable, Telefónica, PRISA, Telecinco and Digital+.

 
The closing  of the deal is subject to a number of conditions, which include approval by the relevant Competition authorities.