UPDATE 2-Prisa mulling whole or partial sale of pay-TV unit

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By Robert Hetz

MADRID, May 22 (Reuters) - Spanish media group Prisa (PRS.MC: Quote, Profile, Research, Stock Buzz) is studying the sale of some or all of its pay-TV business, Digital Plus, Chief Executive Juan Luis Cebrian said on Thursday, confirming speculation.

The purpose of the sale is to reduce group debt to around the average of the sector, he said, adding that Prisa had not given a sale mandate to any broker, nor had it entered into talks with anyone.

"We haven't started negotiations, first we have to define what our position is," Cebrian told reporters at a news conference.

Analysts say the sector debt average is about 2.5 times EBITDA, versus Prisa's debt level of about 6 times estimated EBITDA by year end, following a bid to buy out all of its Sogecable SGCE.MC unit which ends next month.

In a separate statement issued later, Prisa did not rule out seeking financing in the market.

Prisa, owner of newspaper El Pais, might also end up keeping the pay-TV unit, Cebrian added, valued by brokerage UBS recently at about 3.0 billion euros ($4.73 billion).

The group would "start the financial refinancing process, according to market conditions, evaluating divestment opportunities and the need to seek financing in the market," it said in a statement to the stock market commission.