GCLA.L Regulatory News (GCLA)

10 Dec 2007 08:29

Grupo Clarin S.A.10 December 2007 Buenos Aires, 10 December 2007. GRUPO CLARIN S.A. ARGENTINE ANTITRUST COMMISSION APPROVES CABLE TELEVISION ACQUISITIONS On Friday 7 December 2007, Grupo Clarin S.A. (the "Company") was served withnotice of the decision of the Argentine Secretary of Domestic Commerce, issuedunder Resolution No. 257/2007, to approve a series of transactions among theCompany, Fintech Advisory Inc. ("Fintech"), Cablevision S.A. and Multicanal S.A.that had taken place on 26 September 2006, and as a result of which (i) theCompany holds indirectly approximately 60% of the capital stock of Cablevision,(ii) Fintech holds, directly and indirectly, approximately 40% of the capitalstock of Cablevision, (iii) Cablevision, directly or indirectly, owns 98.5% ofthe capital stock of Multicanal, 100% of the capital stock of HoldingTeledigital Cable S.A. ("Teledigital") and 3% of Primera Red Interactiva deMedios Argentinos (Prima) S.A. ("Prima") and (iv) Multicanal owns 97% of thecapital stock of Prima. In connection with its approval, the Argentine Secretary Domestic of Commerceaccepted a two-year irrevocable undertaking (the "Undertaking") offered by theCompany, Vistone LLC, Fintech, Fintech Media, LLC, VLG Argentina, LLC andCablevision, whereby such companies shall: 1. Guarantee the general availability of television signals that are owned or marketed exclusively by the companies involved in the approved transactions, under commercial conditions that are fair to all pay television operators that request such signals, whether or not they are competitors of Cablevision, Teledigital or Multicanal. 2. Guarantee a place in the programming grids of Cablevision, Teledigital and Multicanal to all providers of television signals, whether or not they are competitors of any companies controlled by the companies involved. 3. Guarantee plurality, freedom of information and entertainment ensuring that the programming grid of Cablevision, Teledigital and Multicanal offers subscribers a reasonable supply of news, sports and entertainment signals. 4. In order to pass on to consumers the benefits of the efficiencies generated by the approved transactions, the involved companies guarantee: a. that they will extend their pay television and Internet accessservices. The companies' project involves the laying of approximately 3,000kilometers of 36-fiber fiberoptic cable following the network of Argentinenational and provincial roads. The following cities shall receive broadbandservice coverage: the City of Buenos Aires and its northern, southern andwestern metropolitan areas, Lujan, General Rodriguez, Mercedes, Campana,Saladillo, Tandil, Zarate, Junin, Chivilcoy, Olavarria, Pergamino, Chacabuco,Lincoln, Balcarce, Dolores, La Plata, Ensenada, Bahia Blanca, Tres Arroyos, Mardel Plata, Pinamar, Santa Rosa, Cipoletti, General Roca, Neuquen, the City ofCordoba, Rio Cuarto, Carlos Paz, Villa Maria, Laboulaye, Jesus Maria, BelleVille, San Francisco, Salta, Posadas, Parana, Santa Fe, Rosario, Rafaela, Canadade Gomez, Corrientes, Firmat, Formosa, Gualeguaychu and Resistencia. b. Progressively, an increasing number of cable television customerswill have access to digital services with the following benefits: better imageand sound quality, broader programming offer and the possibility to add newservices that will be offered by the involved companies. 5. Guarantee, during the term of the Undertaking, that certain urban areas in which the networks of the involved companies overlap (La Plata, Necochea and Casilda) and where there are no alternative cable television providers, the basic representative fee for basic cable television services will not exceed the basic representative fee charged in the Buenos Aires metropolitan area. 6. Guarantee, during the term of the Undertaking, the implementation of anoptional social pay television service with a reduced fee that will include allbroadcast television signals and at least ten additional signals. Within theterm of the Undertaking, this social service will be available to no less than5% and no more than 10% of all homes passed by the involved companies in theBuenos Aires metropolitan area. Additionally, the involved companies haveundertaken to carry out the necessary technical studies in connection with theavailability of their technological platform to evaluate the possibility ofextending this social service to other regions in which Cablevision, Teledigitaland/or Multicanal provide pay television services. 7. Provide, free of charge, the connection to the basic pay televisionservice to the following public municipal, provincial and nationalestablishments within the regions covered by the cable television networks ofthe involved companies, in accordance with the following details: a. Hospitals and public health care centres, schools, policeheadquarters, fire department buildings and senior care centres, provided thatthey are located within the regions covered by the cable television networks ofthe involved companies and in urban centres with a population of up to 10,000.The service will be provided free of charge regardless of whether a givenestablishment belongs to a municipality, a province or the federal government. b. Hospitals and public health care centres, schools and senior carecentres, provided that they are located within the regions covered by the cabletelevision networks of the involved companies and in urban centres with apopulation of up to 100,000. The service will be provided free of chargeregardless of whether a given establishment belongs to a municipality, aprovince or the federal government. c. Public schools and senior care centres, provided that they arelocated within the regions covered by the cable television networks of theinvolved companies and in urban centres with a population of more than 100,000.The service free of charge will be provided regardless of whether a givenestablishment belongs to a municipality, a province or the federal government. Enquiries: In Buenos Aires: Alfredo Marin/M. Julia Diaz Ardaya Grupo Clarin Email: investors@grupoclarin.com In London: Alex Money/Tom Allison Temple Bar Advisory Tel: +44 20 7002 1080 Email: clarin@templebaradvisory.com In New York: Melanie Carpenter/Peter Majeski I-advize Corporate Communications Tel: +1 212 406 3692 Email: clarin@i-advize.com This information is provided by RNS The company news service from the London Stock Exchange