OHC confirms Imagina takeover

Jude Law in The Young Pope, which Imagina coproduced

Chinese investment group Orient Hontai Capital (OHC) has confirmed it is taking a majority stake in Spanish producer Imagina Media Audiovisual.

OHC has entered into a “definitive agreement” that will see the Chinese private equity group acquire the shares of Torreal (22.5%), Televisa (19%) and Mediavideo (12%), to take its stake in Imagina to 53.5%. News of the takeover first emerged last year.

The deal, which values Imagina at an enterprise value of €1.9bn (US$2.36bn), will not affect remaining shareholders. These are ad agency the WPP Group (22.5%) and two of the group’s founding members, Tatxo Benet (12%) and Jaume Roures (12%). Management of the group will not change, with Roures and Benet retaining control.

Imagina houses Spanish channels operator and producer Mediapro, which has been expanding its international ambitions over recent years. It has around 30 products in development at various stages and was a coproduction partner on HBO/Sky drama The Young Pope, and its second season The New Pope.

Imagina said the deal with OHC would “generate clear synergies and converging interests” and provide Imagina with better access to China.

Tony Ma, CEO of OHC, described the acquisition as “a crucial step” towards its expansion into Europe. “We strongly believe in the potential and prospects of Imagina and the new media technology industry as a whole,” he added.

“The acquisition of Imagina will not only enable us to introduce advanced audiovisual production technology to China, but also opens new perspectives for exchanges and cooperation among China, Spain and Latin America in fields like content, culture and sports.”

The transaction is subject to regulatory approvals and is expected to close in the second quarter of 2018.