Last Friday, the new board of Cadena Capriles, a media conglomerate that includes the largest newspaper in Venezuela, announced that a company named Latam Media Holding had recently acquired Cadena Capriles. This announcement came after a previous one made about five months earlier by former CEO and owner Miguel Ángel Capriles López (also known as “Michu”), stating that the group had been sold. The new board revealed that Latam Media Group is owned by Hanson Asset Management, based in London. The board now consists of René Brillembourg Capriles, Robert Hanson, Patrick Teroerde, Manuel A. Cristóbal Saucedo, Juan Isidro Señor Boguña, Pedro Rendón Oropeza, José Antonio Gil Yépez, Diego Lepage Gimón, Ricardo Castellanos (current CEO of Cadena Capriles), Eleazar Díaz Rangel (editor of Últimas Noticias), Omar Lugo (editor of El Mundo Economía y Negocios), and Jován Pulgarín (editor of Líder).
There are several issues regarding this acquisition that deserve closer attention. The first is the announcement made five months ago by the former owner and CEO. At that time, Caracas was buzzing with rumors about the buying group, and most pointed towards Víctor Vargas [a chavista banker who owns Banco Occidental de Descuento (BOD)]. However, Vargas stated via social media that neither he nor his group was behind the purchase, claiming, “It is false that BOD or Víctor Vargas have bought Cadena Capriles. It is not of our interest and is not allowed by the Bank.”
In fact, Article 19 of the Banking Law explicitly prohibits banks/bankers from engaging in “communication, telecommunications, and information” matters. Cadena Capriles, with its ventures in newspapers, radio, and online TV, is essentially a conglomerate of “communications, telecommunications, and information.”
But there’s more. Two trusted men of Víctor Vargas are part of the new board (Diego Lepage and Pedro Rendón Mendoza). Additionally, the board announced that Vargas’s BOD would finance – for a sum of $79.5 million – “the new businesses, products, and services of Cadena Capriles.”
The new owner is said to be Latam Media Holding, a company with “2000 shares with a par value of $0.01” incorporated in Curaçao on September 26, 2013. The sole director of Latam Media Holding is TMF Curaçao NV, which is a “50 shares with a par value of 1,000.00 Netherlands Antilles Florin” company acting as a representative (none of its officers are Venezuelan).
The board stated that Latam Media Holding was owned by “Hanson Group” (read Hanson Asset Management), supposedly an “English company with interests in Europe, Asia, and America.” Robert Hanson, founder and CEO of Hanson Asset Management, is part of the new board, as is Patrick Teroerde, a German citizen working for Hanson.
According to records from Companies House, Hanson Asset Management had a modest turnover of £769,433 in 2012, while total assets stood at £395,016.
There is much speculation regarding the price paid for the acquisition (rumors place it between $140 and $185 million). Thus, it is surprising how a company with such low numbers can purchase one of the largest media conglomerates in Venezuela. But it goes further, as the Telecommunications Law (Article 19) limits foreign investment in open radio and television spectrum to individuals/companies domiciled in Venezuela. As noted, Cadena Capriles operates radio and TV online, so the Telecommunications Law applies to some of its operations.
Lastly, there is Decree 2095, which deals with foreign investment, and Article 26 explicitly prohibits foreign ownership of “television, radio, and written newspapers in Spanish.”
So, what to make of this acquisition? If the announcement by the new board has any truth to it, why hasn’t Hanson Asset Management said anything about it? At the time of writing, no announcement or press release could be found online concerning this matter. A small company from London, which made less than a million pounds last year, snags the largest newspaper in Venezuela and other media businesses, yet doesn’t brag about it? Almost five months have passed since the former CEO’s announcement and the one from the new board last Friday, and there is still no news from Hanson Asset Management.
Hanson Asset Management is an English company, its subsidiary Latam Media Holding was incorporated in Curaçao, and none of the signatories are Venezuelan. What Venezuelan regulator approved the sale of Cadena Capriles to a foreign group in clear violation of current laws? Where did Hanson Asset Management find between $140 and $185 million to acquire Cadena Capriles? Who financed the acquisition? What due diligence did Robert Hanson and others do to ensure the legitimacy of the funds used in the transaction? How and when will Hanson Asset Management inform about this acquisition? How will it appear in their books?
This maneuver appears to be an elaborate way to hide the new controlling party of Cadena Capriles. The board’s head, Carlos Acosta López, is/has been a partner of Juan Carlos Escotet (chavista banker owner of BANESCO), who in turn is/has been a partner of Michu since Bancentro; René Brillemburg is Michu’s nephew, Juan Isidro Señor Boguña is VP of a consulting firm owned by Juan Antonio Giner (a consultant for Michu), while Lepage and Rendón are employees of Víctor Vargas.
But then there is the über chavista and current Communications Minister Delcy Rodríguez privately claiming that Tareck el Aissami (chavista Governor of Aragua and former minister) is the new owner, with “bankers” and businessmen serving as mere fronts to conceal the fact.
What is truly astonishing is the almost total silence from the radio about the news in the MSM in English. A sign of Venezuela’s total irrelevance. The request for comments sent to Hanson Asset Management in London has gone unanswered. One must wonder if they are aware of the implications of deals with Aissami…