Officially, CIE (Inter-American Entertainment Corporation) has been notified by Live nation, that the acquisition of shares of OCESA has been canceled. At the beginning of the month, the other partner of the corporation, Televisa, had already been informed of this decision.
Live nation You have exercised a right to suspend the transaction, something in which neither CIE neither Televisa they agreed. Live nation announced in July 2019 its intention to acquire 51% of the total shares of OCESA con lo cual se convertiría en socio mayoritario de la empresa. El negocio se haría por un total de 480 millones de dólares -unos 3,600 millones de pesos – y se esperaba se concretara a finales del año pasado.
On May 5 and after Live nation Releasing their report of expected results for 2020, the three parties signed an agreement, where they promised to try to carry out the transaction. However, that agreement has expired without reaching an agreement. According to CIE, “continuará analizando sus alternativas y se reserva todos sus derechos en virtud de los acuerdos ejecutados en relación a la transacción y las leyes aplicables”, according to the notice presented by the company today to the Mexican Stock Exchange.
Michael Rapino, CEO of Live nation He spoke about the purchase suspension and said he is optimistic about the future of the business, but that his company “no se puede permitir asumir ninguna pérdida en México mientras atraviesan sus seis u ocho meses de recesión comercial causada por la epidemia de COVID-9”.
Already on May 7, Televisa, holder of the 41% of OCESA shares, had expressed dissatisfaction with the decision. «Live Nation reported that, based on a series of arguments, they are not obliged to close the purchase of our shareholding position in OCESA Entertainment. Televisa does not agree with these arguments » dictates the statement sent by Televisa. “The parties entered into a standstill agreement to allow the corresponding talks to take place. Televisa reserves all its rights in relation to said arguments and any related action ».
