Viaplay Group completes $162m sale of Dutch operations to Videoland

Sweden’s Viaplay Group has completed the sale of its Dutch streaming and broadcasting operations to DPG Media-owned Videoland for €142m (US$162m) as the group continues to refocus on its core Nordic markets.

Jørgen Madsen Lindemann

The deal, first announced at the start of July, has received the required regulatory and lender approvals, with all other closing conditions fulfilled.

Viaplay said the disposal is part of its ongoing transformation strategy and will allow it to accelerate deleveraging and strengthen its financial position following last year’s acquisition of the remaining 50% stake in Allente Group and subsequent refinancing.

Viaplay Group president and CEO Jørgen Madsen Lindemann said: “Now that the transaction is complete, our resources are fully focused on our operations in our core Nordic markets, where we have the greatest scale and synergy potential.

“The proceeds will enable us to reduce net debt levels and strengthen our financial position as we continue our work to deliver increased profitability and positive cash flows. We are proud of the business we have built in the Netherlands, and grateful to our local colleagues for making this possible. We wish the team every success under the ownership of Videoland, which is well-placed locally to develop the business further.”

The total cash proceeds from the transaction are expected to total approximately €100m after cash transaction costs, restructuring costs and future payments relating to legacy multi-year agreements.

The proceeds will be used to reduce the group’s net debt level, and Viaplay said it will consider a refinancing of its outstanding borrowing facilities in due course to reduce the group’s borrowing levels and costs.

DPG Media previously acquired RTL Nederland for €1.1bn in cash.