Spanish-language media company Univision Communications Inc. said Tuesday that it would offer 15.8 million shares to the public and use the proceeds to repurchase a stake held by Clear Channel Communications Inc.
Los Angeles-based Univision said it would use all proceeds from the sale to buy back 15.8 million of its shares held by a unit of the U.S. radio station owner.
The repurchased shares would be canceled immediately, and the transaction would not contribute to any dilution of earnings per share, the company said.
Clear Channel would no longer own any of Univision's common stock after completion of the transaction, which is expected to coincide with the closing of the public offering, Univision said.
Media analysts had speculated that Clear Channel might try to cash in on its Univision shares after Univision closed its $3.2-billion purchase of Spanish-language radio company Hispanic Broadcasting Corp. in September.
Shares of Univision, which also operates television networks TeleFutura and Galavision, fell $1.69 on Tuesday to $38.24 on the New York Stock Exchange.