Sawiris to Sell Majority Stake in Euronews

Egyptian tycoon Naguib Sawiris is set to sell his majority stake in Euronews to Portuguese investment firm Alpac Capital, the struggling European broadcaster said on Friday.

The troubled Euronews channel announced on Friday that billionaire is set to sell his largest stake in Euronews to Portuguese investment company Alpac Capital, according to Reuters.

Euronews, which was set up in the wake of the 1990 Gulf War as "European CNN", has been hit hard by falling advertising revenue and taking losses.

Under the binding offer, Euronews said, Alpac will acquire 88% of Euronews' shares owned by Luxembourg-based Sawiris, Media Globe Networks (MNG) for an undisclosed amount.

Michael Peters, chief executive of Euronews, told reporters that the deal will expire by the end of the first quarter of next year.

The remaining 12% of Euronews' shares will remain in the hands of a consortium of public broadcasters and local authorities such as France Televisions, Italy's Rai and Abu Dhabi Media Investment Company (ADMIC).

Peters said that number could change as Euronews plans to raise its capital to raise new funds.

Euronews was owned by a consortium of state-owned European channels before it was taken over by Naguib Sawiris in 2015.

Last year, NBC News sold Comcast its 25% stake in the channel to Naguib Sawiris.

Peters said euronews' advertising sales fell 40% in 2020 in the wake of the COVID-19 pandemic and posted a loss of 16 million euros during that year. The Lyon-based company expects losses of €13-14 million in 2021 with total revenue of €62 million.

Peters, who will step down as CEO to become chairman of the board, said he expects annual losses to be reduced to around €8 million in 2022, particularly thanks to new revenue streams arising from franchise agreements and partnerships.