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Clifford Chance and Ecija advise on Antena 3 takeover

The Madrid offices of Clifford Chance and Ecija have advised on the takeover of Spanish television network La Sexta by rival Antena 3.

The merger is among the most significant in the media sector this year, reportedly valued at €269m, and through which Antena 3, in exchange for a stake in its share capital, will acquire all the assets and liabilities of La Sexta – with the latter brand ceasing to exist.

The Clifford Chance team is led by Corporate Partner Javier García de Enterría, and includes Competition Partner Miguel Odriozola, Tax Partner Pablo Serrano de Haro and Administrative law Counsel Carme Briera.

La Sexta is represented by regular adviser Ecija, led by Managing Partner Hugo Écija, alongside Partners Leticia Domínguez, Esmeralda Campos and Emilio Prieto.

Under the terms of the agreement, La Sexta shareholders will receive 15,800,000 shares in Antena 3 representing seven percent of its share capital. In addition, La Sexta shareholders will be allocated a further seven percent dependent on the financial performance of Antena 3 in future years.

The merger has been facilitated in part by a restructuring of La Sexta, through a debt for equity swap (advised again by Ecija), and reflects a process of ongoing consolidation in Spain’s media sector, driven in part by falling advertising revenues, including notably the 2010 fusion of leading television and communications groups Telecinco and Cuatro.