Mediapro: debt agreement; Orient Hontai Capital increases its stake from 54 to 76% (press)

The shareholders of Spanish media group Mediapro have reached an agreement on the restructuring of the group's debt, according to the Spanish business daily El Confidencial on 23/11/2021.

The Chinese investment fund Orient Hontai Capital is to inject €150m in the form of subordinated debt into the Spanish group, which has been in default (insufficient cash flow to repay its debts) since 30/06/2021. The fund is expected to contribute a further €470m at a later date, for a total of €620m. The fund's stake would increase from 53.5% to 76%. Orient Hontai would take over the shares of the British advertising group WPP while the Catalan founding partners Jaume Roures and Tatxo Benet would each retain 12%.

Orient Hontai acquired 53.5% of Imagina Group, Mediapro's holding company, for €1.019bn on 16/02/2018, valuing the company at €1.9bn at the time.