Spain’s Telefonica has agreed to buy 21 percent of Digital+, the pay television business of indebted media group Prisa, for E470 million. However only E240 million will exchange hands as the remaining E230 million correspond to debt owed to Telefonica by Prisa.

Telefonica and Prisa have drawn up a shareholders’ agreement whereby the Spanish telecom will have the right to appoint two members to the board of Digital+. The acquisition is dependent on regulatory approval.

Telefonica has been in talks to buy the stake for months, a move expected to boost content provision for its pay-TV service Imagenio. Prisa has been selling assets to try to pay off some of its E5 billion debt and reshape its media business.

The two companies have also signed an agreement to explore possible collaboration in developing audiovisual and other businesses in Spain.

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