UPDATE 2-Mexico's Televisa shares rise as Univision stake value increases

viernes 21 de febrero de 2014 15:08 GYT

(Adds details on Iusacell phone business, regulation; updates share price)

By Elinor Comlay

MEXICO CITY Feb 21 (Reuters) - Shares of Mexican broadcaster and pay TV provider Grupo Televisa, the world's biggest producer of Spanish-language content, rose on Friday, a day after it raised the value of its investment in U.S. broadcaster Univision.

The company raised the value of its option to convert loans to Univision into an equity position after it said an anonymous investor took a $125 million stake in the company, valuing it at $8 billion or 15 times core profit.

Televisa shares rose 1.51 percent to 75.74 pesos in early afternoon trading, after climbing more than 6 percent immediately following the company's conference call with analysts.

The company has equity and debentures that, with U.S. regulatory approval, could be converted into a 37 percent stake in Univision.

Executives from Televisa, which reported a drop in fourth-quarter profit on Thursday, said they increased the fair-value of their option in Univision by $385 million.

That was a conservative increase, Televisa Chairman Alfonso de Angoitia said on the call with analysts. "At that valuation that was paid by that financial investor we could value it at $3 billion, but we are being conservative."

The Mexican firm also expects royalties from Univision to increase this year on rising demand for Televisa's content.   Continuación...