14th May 2007 11:34
Telefonica SA14 May 2007 TELEFONICA, S.A., as provided in article 82 of the Spanish Stock Market Act(Ley del Mercado de Valores), hereby reports the following SIGNIFICANT EVENT After analyzing various offers received, TELEFONICA, S.A. ("TELEFONICA")has entered into an agreement for the sale of its 99.7% stake in ENDEMOLINVESTMENT HOLDING BV ("ENDEMOL HOLDING") to a newly incorporated vehicle.ENDEMOL HOLDING is a holding company that indirectly owns 75% of ENDEMOL NV, aglobal leader in television and other audiovisual entertainment that createspremium content for the world's leading broadcasters. The newly incorporated vehicle is jointly and equally owned by (i) MEDIACINCOCARTERA SL, a newly incorporated entity owned by MEDIASET SpA and its quotedsubsidiary GESTEVISION TELECINCO, S.A., (ii) CYRTE FUND II B.V. and (iii) GSCAPITAL PARTNERS VI FUND, LP (together the "Consortium"). The total consideration for the sale of ENDEMOL HOLDING amounts to €2,629million for 75% of ENDEMOL NV valued at €25 per share cum dividend and includingthe additional assets and liabilities within ENDEMOL HOLDING and itssubsidiaries. This price implies a premium on ENDEMOL's latest closing price andrepresents a capital gain close to €1,400 million for TELEFONICA As part of the agreement, the Consortium has committed to launch anunconditional public offer for the remaining 25% of ENDEMOL NV at a price atleast equal to €25 per share cum dividend, as soon as practicable after closingof this transaction. The agreement is subject to obtaining of the relevant regulatory authorisations. Madrid, May 14th, 2007 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
TDE.L