Shares of Madrid-headquartered media conglomerate Prisa, Promotora de Informaciones, SA, (BME: PRS), skyrocketed more than 21 per cent, on Friday, after the Paris-based media giant Vivendi (EPA: VIV) agreed to acquire 7.6 per cent stake in the company.
The investment by Vivendi is likely to maximise its exposure to Spanish-speaking audience. Through Gameloft, Universal Music Group (UMG), and Havas, Vivendi commands a strong presence in various markets across Europe and America.
Prisa shares (22 January)
(Source: Refinitiv, Thomson Reuters)
Best day so far
Prisa share price started the day on a positive footing with a sharp gain of a little more than 6 per cent. The share advanced in a quick succession around 10:35 GMT+1 to a 10-and-half-month high in the mid-morning deals. According to the data available with Bolsa de Madrid, the stock of Prisa soared as much as 21.10 per cent to an intraday peak of EUR 1.14 from the previous close of EUR 0.94.
The stock of Prisa has seen a massive spike in the last four months with the share price zooming more than 140 per cent barring today’s price surge. Prisa share price recorded a 52-week low of EUR 0.38 per share in September 2020. Even after an exceptional rise in the share prices, the stock is still 34 per cent down on a 12-month scale. Later in the day, Prisa shares pared off the gains and were trading at EUR 1.02, up 8.74 per cent, at around 13:23 GMT+1.
Vivendi slips marginally
Meanwhile, the shares of Vivendi experienced an opposite effect after the announcement on Euronext Paris. As per the data available with the exchange, the stock of Vivendi shed 1.09 per cent to hit an intraday bottom of EUR 26.32 per share from the last closing price of EUR 26.61 apiece. Vivendi share price has registered a considerable gain after touching a yearly closing low during Covid-induced market crash.
According to the data available with Euronext Paris, the stock of Vivendi has jumped a little more than 51 per cent to EUR 26.61 (21 January) from a share price level of EUR 17.57 as on 16 March last year. The stock is trading 7 per cent higher on a 12-month scale. Around 13:39 GMT+1, Vivendi shares were trading at EUR 26.34, down 1.01 per cent.
Vivendi-Prisa stake deal: Key highlights
- According to the deal, Vivendi has agreed to a 7.6 per cent stake in Prisa, the owner of El Pais, Santillana, Los 40 Principales, Radio Caracol and Cadena SER, for an undisclosed amount.
- With the prospective deal, Vivendi is eyeing to capture the Spanish-speaking markets across Europe, the US and Latin America.
- The deal is part of Vivendi’s strategy to become a global leader in media, communications and content, the company said.
- The investment being done for acquiring over a 7 per cent stake supports the future developments of Prisa, Vivendi added.