Socialist Party MEP João Albuquerque has questioned whether the European Commission is “able to guarantee” ownership transparency rules required in the case of new shareholders of Global Media Group (GMG).
In response to Lusa on Thursday, the Social Communications Regulatory Authority (ERC) said that the investment fund World Opportunity, based in the Bahamas, owns 51% of the share capital of Páginas Civilizados, owned by businessman Marco Galinha, who controls directly and indirectly 50.25% of Global Media and 22 .35% Lusa.
On the same day, the PS MEP questioned the European Commission in writing about the transparency of the ownership of the owner of Diário de Notícias (DN), Jornal de Notícias (JN) and TSF radio, among other publications, according to information obtained by Lusa, namely “whether it ensures compliance with the ownership transparency mechanisms required in an acquisition or transaction carried out in GMG.”
This is “given the concerns we have about these processes, the instability they cause and the importance of uncompromisingly protecting the freedom and editorial independence of journalists discussed during the EMFA. [European Media Freedom Act]”, explains the Socialist MEP in the question.
In a posted question, João Albuquerque highlights that “the recent approval by the European Parliament of the European Commission’s proposal on media freedom – the European Media Freedom Act – places new responsibilities on the European institutions with regard to the concentration and ownership of companies that own social communications bodies.”
It also said that in Portugal, “changes in GMG’s shareholder structure, as presented in the press, radio and digital media, are publicly known.”
João Albuquerque recalls that on August 4, the president of the board of directors of GMG, Marco Galinha, “confirmed to the Lusa news agency that the Bel group sold part of the group to the fund, while the details of the transaction are unknown.” , adding that “the shareholder structure must undergo changes, the extent and impact of which are unknown.”
In addition, “at the same time, there were changes in the editorial management of TSF radio from the same group, without taking into account the editorial board, as provided for in the Press Law, which led to a 24-hour strike by workers,” he singles out the MEP.
On October 3, the PS asked the ERC to indicate what the funding and share capital of Global Media’s new shareholder structure would be, stressing that “little or nothing is known.”
World Opportunity Fund Ltd, “based in the Bahamas and registered on the Bahamas International Stock Exchange as an open-end investment fund under the acronym WOF”, informed the regulator that, in accordance with the agreement for the division and assignment of shares signed on July 25, 2023, it was acquired from Palavras de Prestigio, Lda, a share representing 38% of the share capital of Páginas Civilizados, Lda,” according to the ERC.
Subsequently, “by means of an agreement for the division and assignment of shares signed on September 21, 2023 and filed for registration on October 5, World Opportunity Fund Ltd acquired from Grupo Bel a share representing 38% of the share capital of Páginas Civilizados, Lda.” , continues the regulator.
Thus, they add, World Opportunity Fund Ltd now holds a global stake in Páginas Civilizados Lda, amounting to 51% of its share capital.
The regulator recalls that “Páginas Civilizada directly or indirectly owns a share corresponding to 50.25% of Global Notícias Media Group, SA” and also directly owns 22.35% of the share capital of Lusa – Agência de Notícias of Portugal, SA.
This communication was sent to the ERC under the law, which regulates the transparency of the ownership, management and funding of organizations operating in the field of social communications, and is “under review”.
The regulator is “waiting for the company to subsequently update the shareholder data contained in the Media Transparency Platform,” the ERC said.