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The Council of Prisa analyzes today the purchase offer of Blas Herrero by its means

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The board of directors of Rush will analyze today, with extraordinary character, the purchase offer from Blas Herrero and a group of investors for its media division.

According to 'El Mundo', "the large shareholders of Prisa They do not oppose the purchase of their media by Blas Herrero, but they see little supply". The offer would be around 150 – 200 million euros.

Prisa shot up 21% this Thursday after confirming the purchase offer. In a statement sent to the CNMV, he added that his "Board of Directors will analyze the proposal and adopt the appropriate measures, a circumstance that will be reported to the market when appropriate, in compliance with its obligations ".

Prisa explained that Blas Herrero has presented a "offer to purchase your media, both written, radio and audiovisual", which excludes the education division.

"The acquisition of Prisa Medios would be implemented through a limited liability company (HoldCo), in which a group of investors led by Blas Herrero would have a significant but not necessarily controlling stake"he said in a statement.

Thus, Herrero has offered the current shareholders of Prisa "participate in the capital"of the new society making "monetary contributions to its capital stock".

This is not the first movement of the Asturian businessman, who has also shown his interest in Hard Felguera. Businesses include newspapers 'El País', 'Cinco Días' and 'As', Cadena Ser and the musical chain 'Los 40 Principales', among other means, as well as the radio stations in Latin America.

Haste intends segregate its media division and its publishing division, since its most strategic asset is the Editorial Santillana. It is in this scenario where Herrero's offer has emerged, which has already contacted several shareholders.

FIRST ASSESSMENTS FROM THE ANALYSTS

The first analysts' assessments imply that Prisa's media would be valued at 282 million euros by the experts of Sabadell Bank, who rate the offer as "very low". Although Bankinter considers "reasonable" the figure of 200 million because it represents almost half of the group's valuation.

A month ago, the group sold to Sanoma Corporation, a Finnish media company with a presence in Europe in the education sector, the Santillana business in Spain for 465 million euros. In addition, it announced the restructuring of its high debt: 1,148 million euros.

The basic terms of the restructuring consist of the partial repayment of 400 million euros; a significant lengthening of the maturity terms of the remaining financial debt, until the year 2025; and the adaptation of the economic conditions of the debt to the new cash generation capacity of the group.

Along with these essential terms, the agreed restructuring allows Prisa incur new debt preferred rank in order to strengthen its future liquidity position, as well as carry out certain corporate reorganization operations.

Finally, among the essential terms are the relaxation of various financial ratios and Prisa's commitment to reach maximum leverage by December 2023.

Thus, the goal of Amber Capital, Prisa's largest shareholder with almost the 30% of capital, is to focus "as a priority on the management and enhancement on firm and sustainable bases of its two businesses, Education and Media". Amber believes that "both have high potential, managed with differentiated teams, attentive to their specific characteristics and circumstances, which require different capabilities and routes, thus being able to attract the resources and capital necessary for each of them".

The company has been going through a difficult financial situation for a long time. In the first nine months of the year, it announced losses of 209 million euros after the accounting adjustment of Media Capital (77 million), the deterioration of all the outstanding tax credits in Spain (64.55 million) and that of its radio assets in Chile and Mexico (21.9 million).

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