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MEDIASET ESPAÑA COMUNICACIÓN, S.A. AND SUBSIDIARIES
Loans to related companies
The breakdown of “Loans to related companies” at 31 December 2011 and 2010 is as follows:
31.12.2011
31.12.2010
Endemol Group’s Debt
46,085
54,865
Loans granted to Pegaso
3,410
-
49,495
54,865
Endemol Group debt relates to acquisitions made in prior years from third par ties under market conditions of Endemol
Group debt, as explained in the notes to the 2010 consolidated financial statements.This debt is measured at amor tised
cost.There were no additional purchases of debt in the year ended 31 December 2011.
Interest accrued in 2011 amounted to EUR 5,763 thousand (2010: EUR 5,812 thousand euros), of which EUR 2,771
thousand relates to cash receipts and EUR 3,041 thousand to revaluations using the amortised cost method.
Based on recent trends in the Endemol Group’s financial position and the market prices of Endemol’s bonds in recent
months, the Directors have reassessed the measurement of these credits at 31 December 2011.As a result, an additional
impairment of EUR 9,411 thousand was recognised at 31 December 2011 under “Disposal/Impairment of other financial
assets”.The impairment loss recognised I the 2010 income statement was EUR 8,299 thousand.
Other financial assets
As mentioned in Note 9, Prisa TV granted Mediaset an option whereby, once a year has elapsed from the date of
acquisition of DTS, Distribuidora deTelevisión Digital, S.A., Mediaset may recognise cer tain rights over the management
of Digital+.
The price of granting the option is EUR 5,000 thousand, which Mediaset paid to Prisa TV on 28 December 2010.
Mediaset España Comunicación may exercise this right within three months after the first anniversary of the closing of
theTransaction.The option strike price is EUR 5,000 thousand, payable once the suspensive condition has been fulfilled.
Execution of the rights of the Option Contract and payment of the exercise price are contingent upon the suspensive
condition that the required authorisation is obtained from the anti-trust authorities.
If such authorisation were not unconditional or subject to suspensive conditions (as ruled by an independent exper t
appointed by the par ties) or if the par ties did not reach an agreement to determine whether the conditions were
substantial, PrisaTV, on the one hand, and Mediaset España Comunicación, on the other, would proceed, as appropriate,
to (i) delivery of the Mediaset España Comunicación shares held by Prisa TV; (ii) deliver Mediaset España’s investment
in Digital+; and (iii) pay an additional amount by Prisa TV or Mediaset España Comunicación, as appropriate, based on
the value of the two investments.