MTG sells Baltic media businesses to US company
Swedish media holding Modern Times Group (MTG) has signed an agreement whereby it sells its businesses in Estonia, Latvia and Lithuania to the U.S.' Providence Equity Partners.
The cash transaction values 100 percent of the business at an enterprise value of €115 million or approximately 1.09 billion Swedish kronor, equivalent to 12 times the EBIT for 2016.
The sale reflects MTG's ongoing transformation from traditional national broadcaster to global digital entertainer, MTG said in a press release.
The Baltic businesses have been reported within the International Entertainment segment of MTG; they contributed 1.024 billion Swedish kronor in sales and 91 million kronor in operating income (EBIT) for the full year 2016.
Closing is subject to regulatory approvals.
Key operations included in the sale are three TV channels in Estonia (TV3, TV3+ and TV6), five TV channels in Latvia (TV3, TV3+, TV6, Kanals 2 and LNT) and three TV channels in Lithuania (TV3, TV6, TV8), the third largest commercial television operator in the Baltic region, nationwide commercial radio stations, digital assets and an online advertising consultancy operating across the Baltic region.
The Baltic TV-channel portfolio had a combined 48.6 percent Commercial Share of Viewing (CSOV) as of the final quarter of 2016 among the target audience of viewers of ages 15-49, the press release said.
Editor: Aili Vahtla