Africa's biggest media firm, Naspers, is looking at further opportunities in Brazil after paying $422 million for a 30 percent stake in leading Brazilian media company Abril, the South African group said on Monday.
Naspers said the acquisition of Abril - one of the largest media group in Latin America - was in line with its strategy to expand into new markets, focussing on Brazil, Russia, India, China, South and sub-Saharan Africa.
"This transaction will establish a solid presence in Brazil. Further opportunities are being pursued. Brazil is an attractive market, where strong economic growth is expected to drive domestic media growth," Naspers said in a statement on Monday.
The transaction was announced on Friday.
Naspers said it will pay US investment fund Capital Group $177 million for its stake in Abril, buy shares held by Brazil's Civita family for $86 million and subscribe for newly-issued Abril shares for $159 million.
Family-owned Abril sold a 13.8 percent stake in the company in July 2004 to Capital Group for $50 million.
"The proceeds received by Abril from the transaction will be used to reduce debt and to fund expansion of the business," Naspers said.
Brazil's media law was revised in 2002 to allow foreign investors to own up to 30 percent of Brazilian television, radio and print media businesses.
Abril is one of the most influential media conglomerates in Latin America, publishing magazines, books, comic books, maps and travel guides.
Seven of Brazil's 10 most popular magazines are published by the group, including the Brazilian edition of Playboy. Its flagship publication, Veja, is the most widely read magazine in Brazil and one of the best-selling news weeklies in the world.
Grupo Abril also owns the largest database marketing company in Brazil and has a 70 percent stake in MTV Brasil.