Telefónica agrees price on Canal Plus stake

Spanish telecommunications company Telefónica has agreed a deal to acquire a majority stake in pay-television operator Canal Plus, a major sports broadcaster in Spain.

In early May, Telefónica made a binding offer of €725m ($1bn) to acquire media company Prisa’s 56-per-cent stake in Canal Plus, but the telco said that the final deal was worth €750m – €25m more than planned.

The transaction, which needs to be approved by competition authorities and a representative panel of banks that finance Prisa, will allow Telefónica to increase its stake in Canal Plus from 22 per cent to 78 per cent.

Prisa has been keen to ease financial difficulties while Telefónica is aiming to establish the dominant pay-television sports broadcaster in Spain.

Canal Plus changed its name from Digital Plus in 2011.