IFT ratifies the new shareholding configuration of Radiopolis; Prisa keeps 50% of the company

The Federal Telecommunications Institute (IFT) validated the new configuration of shareholders of the Radiopolis Systems, after almost five years in which various economic groups that participate in the company as investors disputed the control of this company that operates 18 AM/FM radio stations and with coverage for 62% of the Mexican population in 22 states of the Republic.

The sector regulator for telecommunications and broadcasting confirmed that the Spanish group Prisa holds 50% of Radiópolis and also welcomed the incorporation of the group Barrister as a new shareholder, with 5% of the company, since its participation in Radiopolis means for the IFT the appearance of a new broadcasting concessionaire at the local and national level in Mexico that will put pressure on competition in that industry, according to resolution P/IFT /280922/513.

The rest of the shareholding is distributed among the shareholders Real Credit Lease (Creal) and the Alemán family, through the Corporativo Coral, a company that in July 2019 bought its 50% of Radiópolis from Televisa in a deal for 1,248 million pesos that year, but was unable to pay the agreed amount on time. Televisa and then a struggle for control of the broadcasting group broke out that lasted several years.

The shareholding reconfiguration in Radiópolis passes through the control of six radio concessionaire companies, which in turn are the direct holders of the 18 AM/FM stations.

These are six companies that have control of 11 frequency modulated stations and five amplitude modulated stations, plus one in a continuity agreement.

“The transfer of shares, foreseeably, would not have effects contrary to the process of competition and free concurrence in the provision of the commercial sound broadcasting service (…) Before the operation, economic interest groups of the acquirers did not participate directly or indirectly in the telecommunications and broadcasting sectors of our country; Creal and Barrister stand out in a timely manner”, indicated the IFT.

Radiopolis frequencies in Mexico City – 730, 900 and 940 AM and 92.9, 96.9 and 101.7 FM – have concession titles valid until July 3 and 4, 2036, according to the Federal Institute of Telecommunications.

The IFT also reports that Televisa he paid 89 million 209,734 pesos in August 2017 for the renewal of the titles of those six stations in the capital; 22.6 million pesos per FM station and 7.5 million per AM frequency, reference data that also determined the sale of its 50% to Coral in 2019.