Meanwhile, the previously announced sale of MTG’s free-TV broadcasting business in Tanzania to the same buyer is pending local regulatory approval and is expected to close in Q1 2017.
According to MTG, the sales reflect its ongoing strategic transformation from a traditional broadcaster into a digital video entertainment company.
The African free-TV and production businesses generated sales of SEK21 million (€2.15 million) and an EBIT of SEK27 million for the first 11 months of 2016, of which Ghana and Nigeria contributed with sales of SEK18 million and EBIT of SEK11 million.
The sale of MTG’s businesses in Ghana and Nigeria will result in a preliminary net capital loss of some SEK24 million, which will be reported within items affecting comparability (IAC) in MTG’s Q4 2016 financial results.
The sale of the Tanzanian operations is expected to result in an insignificant net capital effect.