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MTG sells Russian & international pay-TV channels businesses

MTG announced that it has simultaneously signed and completed the sale of its Russian and international pay-TV channel businesses for a total consideration of USD 45.5 million. The Russian channel business comprises factual, movie and sports channels, while the international channel business comprises pan-regional factual channels and the TV1000 movie channels.

These transactions do not include MTG’s other entertainment channels or platforms, or the global Trace pay-TV channels business.  The businesses being sold generated combined revenues of SEK 448 million and operating profits of SEK 102 million for the first nine months of 2015.

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Sabiero Holdings Limited, a wholly owned subsidiary of the international private equity firm Baring Vostok, has acquired MTG’s international channels business, and Russian company LLC Sinerdzhi has acquired the Russian channels business.

Irina Gofman, MTG Executive Vice President and CEO of the acquired businesses, will be responsible for these businesses under the new ownership, and the existing management teams and employees will also stay with the acquired businesses under the new ownership.

A preliminary accounting and non-cash gain of approximately SEK 40 million will be reported as a non-recurring item in MTG’s Q4 and full year 2015 results as a result of these transactions announced today. The effects of the CTC Media transactions are separately reported in the ‘discontinued operations’ lines of MTG’s accounts.

http://www.mtg.com/