On August 31, 2024, the General Meetings of Shareholders of Latin American Radio Broadcasting Company, owner of Latin Television, Latina Media and Latina Comunica, approved the merger of the three companies through a merger by absorption.
This agreement was presented by the respective boards of directors and management of each company, in accordance with the General Companies Law, as specified in a notice published in the Official Bulletin of the newspaper El Peruano.
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As a result of this merger, Latin American Broadcasting Company will take over the assets of Latina Media and Latina Comunica, which will be dissolved without the need for liquidation. Notably, the former specializes in selling advertising space through its own or third-party television programs, which are broadcast as part of Latin Television’s programming.
The arrival of Enfoca
In June 2012, Focus entered the capital of Latin Frequency (as it was known at that time) with a stake of nearly 75%, while the remaining shares were held by Baruch Ivcher. A few years later, the investment fund acquired all the outstanding shares.
Ivcher remained in position as president of the board of directors until September 2013, when he was succeeded by Jesús Zamora León, co-founder of the investment fund. At the end of July last year, the company made the decision to appoint Cayetana Aljovín as the new president, while Zamora remained on the board of directors.
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It is significant to note that Focus aims to achieve profitability through acquiring high-risk investments and subsequently selling them for long-term capital gains.
Additionally, according to the “Fund Participation” regulations, the disinvestment period must commence no later than between the 10th and 12th year. However, in exceptional cases, the period may be extended by up to 5 years for liquidation purposes, pending prior agreement by the Shareholders’ Assembly.
In this context, as an important detail from the Superintendency of the Securities Market (SMV), on June 14, the Universal General Assembly of Participants of Enfoca Capital 1, the investment fund that includes Latina TV, decided to extend its term until no later than July 1, 2029, “as long as all the monetary funds due have been settled and delivered to the participatory share holders.”.
Enfoca’s finances
In its latest financial statement presentation, it was revealed that as of June 30 of this year, Focus SAFI manages three investment funds with a total committed capital of US$ 181 million and S/ 6.4 million.
The statement also showed an operating profit of S/ 600,000, which is S/ 400,000 less than the same period in 2023, while net profit increased to S/ 700,000. At the same time, financial income was reported at S/ 200,000, remaining stable.
Lastly, the current assets of Focus amounted to S/ 16.9 million, representing a 12% decrease compared to the first half of 2023.
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On August 31, 2024, the General Meetings of Shareholders of Latin American Radio Broadcasting Company, owner of Latin Television, Latina Media, and Latina Comunica approved the merger of the three companies under the merger by absorption modality.
This agreement was presented by the corresponding boards of directors and management of each company, in accordance with the General Companies Law, as specified in a notice published in the Official Bulletin of the newspaper El Peruano.
READ ALSO Parque Arauco and the key projects that it will inaugurate: Independencia and Ica in the spotlight
As a result of this merger, Latin American Broadcasting Company will assume the assets of Latina Media and Latina Comunica, which will be dissolved without the need for liquidation. The first, it should be noted, is dedicated to the sale of advertising space through its own or third-party television programs, which are broadcast by the programming of Latin Television.
The Arrival of Enfoca
In June 2012, Focus entered the capital of Latin Frequency (so called at that time), having a participation close to 75%, while part of the remaining shareholding belonged to Baruch Ivcher. Years later, the investment fund acquired all the shares.
Ivcher remained until September 2013 as president of the board of directors of the television channel, being replaced by Jesús Zamora León, co-founder of the investment fund. Towards the end of July of last year, the company decided to appoint Cayetana Aljovín as his new replacement, leaving Zamora as a member of the board of directors.
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It is worth mentioning that the objective of Focus is to obtain profitability through the acquisition of investments that represent capital risk and then sell them, achieving long-term capital gains.
Furthermore, according to the “Fund Participation” regulations, the disinvestment period must begin at most between years 10 and 12. Exceptionally, for the purposes of liquidating your investments, the validity period may be extended for a period of up to 5 years, with prior agreement by the Shareholders’ Assembly.
In this way, as stated as an important fact in the Superintendency of the Securities Market (SMV), last June 14, the Universal General Assembly of Participants of Enfoca Capital 1, the investment fund where it is located Latina TV decided to extend its validity no later than July 1, 2029, “as long as all the monetary funds corresponding to them have been settled and delivered to the holders of the participation quotas.”.
Enfoca’s Finances
In its latest presentation of the company’s financial statements, it reveals that as of June 30 of this year, Focus SAFI manages three funds investment, with a committed capital of US$ 181 million and S/ 6.4 million.
Likewise, it reported an operating profit of S/ 600,000, which is equivalent to S/ 400,000 less than what was recorded in the same period of 2023, while net profit rose to S/ 700,000. Meanwhile, financial income amounted to S/ 200,000 million, remaining at the same levels.
Finally, the current assets of Focus amounted to S/ 16.9 million, which represented a decrease of 12% compared to the first half of 2023.
Potential Implications of the Merger
The merger between Latin American Radio Broadcasting Company, Latina Media, and Latina Comunica stands to significantly reshape the media landscape in Peru. Some potential implications include:
- Enhanced Programming: Combining resources may lead to more diverse and improved programming offerings.
- Operational Efficiency: Streamlining operations can reduce costs and improve profitability.
- Stronger Market Position: A larger entity can better compete with other media companies, boosting market share.
- Cross-Platform Promotion: The merger allows for more effective promotional strategies across television, radio, and digital platforms.
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