TV4 Group and Telenor strengthen Canal+ co-ownership

Swedish broadcaster TV4 group and Telenor have signed a co ownership agreement for C More Entertainment, which operates under the Canal+ brand name in the Nordic countries. Under the agreement, the Nordic telecoms giant Telenor will acquire a 35% in C More Entertainment through a share purchase and a directed new share issue of the company’s shares. Telenor has paid a cash consideration of SEK 787 million ($104 million). In addition, Telenor sports rights, including Danish rights to the FIFA 2010 World Cup and the Danish soccer league, will be transferred to C More Entertainment under a sub-licence. As a result, Canal+ has acquired new sports rights for the Spanish, Italian and US soccer leagues along with tennis tournaments, premier league ice hockey matches and will launch several new premium channels throughout the Nordic region which will enable customers to access an enhanced selection of sports, films and movie contents.

In a statement this morning, TV4 said the two companies have been working closely since TV4 bought Canal+ from ProSiebenSat.1 Group for US$495 million back in June 2008 and today’s deal was intended to enhance the collaboration. Telenor’s buy-in values C More at US$297 million.

Jan Scherman, TV4 Group CEO, said Canal+ had performed well since the 2008 buy out and reported its best results last year: “We are now creating even better opportunities for it to maintain its position as the Nordic region’s leading TV channel in the premium segment, and are also enlarging our offer”, he commented.