Scripps Networks Interactive is to acquire a controlling interest of around 52.7% in the Polish national commercial broadcaster TVN from Canal+ and ITI Group for €584 million in cash.
Once the deal is completed, Scripps will hold 100% of shares in N-Vision through Southbank Media Ltd, the UK-based part of Scripps Network Interactive.
This, in turn, will directly or indirectly, through Polish Television Holdings, hold the majority stake in TVN.
Meanwhile, Scripps Networks International will assume both the debt level on Polish Television Holding and TVN of €300 million and €540 nominal value, respectively.
The deal is subject to customary conditions precedent including regulatory approvals. Nomura Interantioanl is acting as the sole advisor to TVN, while J.P. Morgan Ltd and Bank of America Merrill Lynch are the financial advisors to ITI Group and Canal+ Group.
Commenting on the deal, Markus Tellenbach, president and CEO of TVN S.A., said: “This agreement with Scripps Networks Interactive is evidence of the hard work and commitment of every single employee of TVN in building the biggest and most successful media company in Poland. Scripps Networks Interactive understand the importance of the Polish market, and the value of developing compelling content that connects with consumers. We are delighted to be joining the Scripps Networks Interactive family, and we’re excited about developing and strengthening our business for many years to come.”
Kenneth W. Lowe, chairman, president and CEO of Scripps Networks Interactive, added: “This transaction is an important milestone in the ongoing strategic development of our international business, and provides us with substantial further scale in Europe. Poland is a vibrant media market with significant growth potential. TVN has an incredible portfolio of channels and services, and has delivered consistently strong creative and financial performance under the leadership of Markus Tellenbach. The business will be a strong addition to Scripps Networks Interactive, and we’re looking forward to working with the whole TVN team to achieve our significant ambitions in the region together.”
Bruno Valsangiacomo, executive chairman and a founding shareholder of ITI Group, continued: “Together with our partner Canal+ Group we have successfully agreed the sale of our controlling stake in TVN. We are proud to put TVN into the hands of Scripps Networks Interactive – a family controlled enterprise with a 140-year history as one of America’s most forward-thinking media companies. Having founded TVN in 1997 and built it into the most important television operation in Poland, it was paramount for us to secure continuity, quality and editorial independence of TVN’s business. I am confident that Scripps Networks Interactive is the perfect partner for TVN and will continue the extraordinary success story of TVN, whilst bringing a fresh and welcome perspective to the Polish media landscape.”
TVN was launched in the mid-1990s by a consortium of ITI Group and Central European Media Enterprises (CME). It quickly established itself as one of the main broadcasters in Poland, competing directly with Polsat and publicly owned TVP.
The sale of the majority stake in TVN has attracted interest from a number of leading companies including Time Warner and Discovery.
Bauer emerged as the favourite before Scripps came into the picture, through various media reports, earlier this month.
