Media Capital sells radio stations portfolio to Bauer for €69.6 million

Media Capital announced the sale of Media Capital Radios to the Bauer Media Group for €69.6 million, after confirming that the deal was on track for completion. According to the owner of TVI and CNN Portugal, the amount is subject to completion adjustments, which should take place during the first half of this year.

In a statement disclosed through CMVM, Media Capital group said it has signed a share purchase agreement with Bauer Media Audio Holding GmbH in relation to 200,000 nominative form shares, representing 100% of the share capital and voting rights of Media Capital Rádios, wholly-owned affiliate company held by Meglo – Media Capital Global, which is 100% owned by Media Capital.

Media Capital Radios is the radio business of the group that includes Rádio Comercial, Smooth FM, Vodafone FM, M80 and Cidade FM, among others. Comercial, in particular, has been recognised as an audience leader in Portugal.

“The provisional share purchase price for the sale of the shares in MCR II amounts to EUR 69,600,000.00 (sixty-nine million six hundred thousand euros), subject to completion adjustments,” says the statement, adding that the sale still awaits the approval of the Media Regulatory Authority (ERC).

Estimating that the transaction will be completed during the first half of 2022, Media Capital explains the sale “is part of the policy initiated by Media Capital to increase focus in the areas of audiovisual and digital production.”

In this sense, the group foresees that “this transaction will result in an accounting capital gain in the consolidated accounts of Media Capital which we estimate to be close to EUR 50,000,000.00 (fifty million euros) but depending on any completion adjustment.”

This acquisition marks the Bauer Group’s entry into the Portuguese market, whose audio business is present in nine different countries.