Portuguese media group Impresa, which controls national commercial broadcaster SIC, has reached an agreement with Italy’s MediaForEurope (MFE) for a capital increase that will see the Italian company inject between €15 million and €40 million.

This strategic move allows MFE to acquire a significant stake of just under 33.3 per cent in Impresa, thereby avoiding a mandatory takeover bid and a change of control.

According to both Portuguese and Italian media reports, negotiations are expected to be formally announced to the market within days. The deal marks a crucial step for Impresa, which has been grappling with financial difficulties and reportedly needs around €80 million to rebalance its accounts.

The long-term strategy for MFE is to eventually assume majority control of Impresa. For now, however, the focus is on strengthening Impresa’s capital structure and providing immediate financial relief.

Impresa’s financial situation has been a concern, with the group closing 2024 in the red by €66 million, impacted by a significant write-down. Net debt had risen to €130.9 million. The capital increase is expected to be complemented by negotiations with banks for a potential debt write-off.

The agreement comes amidst a reorganisation of Impresa’s governance following the death of its founder, Francisco Pinto Balsemão, on October 21st. His five heirs have equally divided the 50.3 per cent stake in the Balseger holding company, which controls Impreger, Impresa’s largest shareholder.

After the capital increase, the Pinto Balsemão heirs are expected to hold around 35 per cent, with MFE holding approximately 33 per cent.

For MFE, controlled by the Berlusconi family, this investment signifies a further step in its European expansion strategy. While MFE has traditionally focused on TV assets, Impresa’s portfolio includes not only the popular SIC TV channels (SIC, SIC Noticias, SIC Radical, SIC Internacional) but also widely read newspapers such as Expresso and magazines including Visão, Exame and Caras. 

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Categories: Broadcast, Business, Funding, Headline, M&A

Tags: impresa, italy, MFE