is acquiring two big California radio stations from
(EVC - Get Report)
for $90 million.
Univision will pay for the stations, in San Francisco and San Jose, with Entravision shares it holds.
Univision's acquisition of the two stations, KBRG-FM and KLOK-AM, falls in line with an earlier agreement between the country's largest Hispanic broadcaster and the Justice Department after its acquisition of Hispanic Broadcasting in 2003. Under that agreement, Univision must reduce its stake in Entravision to 15% by the end of March 2006. This deal is expected to reduce Univision's stake in the company to 20%.
"This transaction represents a unique opportunity for us to acquire two attractive radio stations in a market with a rapidly growing Hispanic population while fulfilling our regulatory requirements in a timely, responsible manner," Ray Rodriguez, chief operating officer of Univision, said in a statement. "We are confident that these stations will benefit from the tremendous cross-promotion opportunities provided by Univision's two television stations and four other radio stations in the market."
The transaction is expected to close in early 2006.
Early Tuesday, Univision rose 25 cents to $27.86, and Entravision added 22 cents to $8.49.