Spain's Telefonica has announced that it will acquire 21 percent of Digital+, which is the pay television business of indebted media group Prisa, for 470 million Euros.

But, according to the statement issued by Europe's largest telecom, only 240 million euros will exchange hands while the remaining 230 million Euros correspond to debt owned to Telefonica by Prisa.

Further, the statement also revealed that the acquisition is dependent on regulatory approval.

Telefonica and Prisa have framed a shareholders’ agreement through which the Spanish telecom will have the right to appoint two members to the board of Digital+.

From the last few months, Telefonica has been in talks to acquire the stake, the move likely to strengthen content provision for its pay-TV services Imagenio.

On the other hand, Prisa has been making continuous efforts to pay off its 5 billion euro debt pile and to re-design its media business.

While talking to reporters, a Madrid-based trades said, “The price is at the top end of the range reported in most of the press over the past weeks, so should be positively viewed (for Prisa).”

The two companies have also inked a deal to explore possible partnership in developing audiovisual and other business in Spain.