Telefonica on Monday announced that it will invest €100 million in Italian pay TV company Mediaset Premium in the coming months.

Under the terms of the agreement, Telefonica will receive an 11.11% stake in Mediaset Premium, a pay TV unit of Italy's Mediaset group.

"The enterprise value of Premium, before the contribution of Telefonica, has been set at €800 million," the telco said in a short statement.

Separately, Mediaset said Telefonica's investment signals the start of a process that could see other international shareholders join Mediaset Premium.

"This partnership marks an important alliance between Mediaset and Telefonica for future collaboration in pay TV activities, in terms of technology, know-how and content," Mediaset said.

The announcement comes two months after Telefonica revealed that it had made a €725 million offer for a 56% stake in Distribuidora de Televisión Digital (DTS), the owner of Spanish pay TV company Canal+. Telefonica already held a 22% stake in DTS.

On Friday Telefonica took its stake in DTS to 100%, buying out Mediaset Espana's 22% holding for €295 million.

Those deals have yet to close.