, a Buenos Aires-based Internet company, will merge with Latin American cable television and Internet provider
Ibero American Media Partners
, a joint venture of Cisneros Group and Hicks Muse Tate & Furst.
The combined entity,
Claxson Interactive Group
, will target Spanish and Portuguese language pay-television, radio and Internet audiences around the world.
Each El Sitio common share will be exchanged for one new common share of Claxson Interactive Group. El Sitio shareholders, including Ibero, which has an 18% stake in El Sitio, will own 41.5% of Claxson's common shares. The combined company will have about 109.5 million common shares outstanding.
For the 12 months ended June 30, the combined company would have had revenue of about $119 million, available cash of about $119 million, long-term debt of about $116 million and shareholders equity of $409 million.
The companies expect to complete the merger in the first quarter of 2001. Roberto Vivo, the chairman and co-founder of El Sitio, will become chairman and CEO of Claxson.
Shares of El Sitio were recently down 31 cents, or 8.2%, to $3.56 in