Looks like it’s all change for RTL Group and MTG, two of the leading foreign investors in Russia’s TV industry.
The former, following a long period of speculation, may be about to surprise everyone by actually staying in rather than leaving the market. Although the asset swap with National Media Group (NMG) is not yet a done deal, it could be finalised within a matter of days.
Its importance cannot be understated. While on the one hand it would see RTL Group relinquish its entire stake in Ren TV, on the other the Luxembourg-based company would gain a significant foothold in one of the rising stars in Russia’s TV industry.
Controlled by Yuri Kovalchuk, the chairman of the board of directors of Bank Rossiya, NMG already has stakes in Ren TV, Channel One, Channel Five, the ad sales company Video International and publishing group Izvestia.
This would mark a turnaround for RTL Group, which it had been believed would be disposing of its remaining assets in Russia.
At the same time, we have learnt that NMG is to secure a stake in CTC Media, one of the leading commercial broadcasters in Russia and in which Modern Times Group (MTG) is already a majority (38.2%) shareholder. It will be done by acquiring the 25.1% in CTC Media currently held by Alfa CTC Holdings Limited (ACH) as part of Telcrest Investment Limited (Telcrest), a newly formed company that includes by Mediaset, Abit Holdings and Surgutneftgas – all affiliates of Bank Rossiya – and Itera Media Limited.
As part of the deal, which is understood to be worth around $1.07 billion (€760.1 million), MTG has waived the right to purchase the shares in CTC Media currently held by ACH.
Although MTG’s position will effectively remain unchanged, it will, should the Ren TV/NMG share swap be completed, find itself indirectly partnered up with RTL Group in CTC Media. Confusing, perhaps, but also interesting.
