MTG has sold its international and Russian pay-TV businesses to a subsidiary of private equity firm Baring Vostok and a Russian company respectively in a deal worth $45.5 million.
It’s the latest reaction to the controversial media laws introduced in Russia. Last week, Baring Vostok has emerged as a possible buyer of MTG’s Viasat assets in developing markets, including Russia.
The international business includes TV1000, one of the most recognisable premium movie brands in the Nordic region, alongside pan-regional factual channels. The Russian interests include factual, movie and sports channels.
The transactions do not include MTG’s other entertainment channels or platforms, or the global Trace pay-TV channels business.
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 EVP 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.
“The sale has been made necessary by the changes in the Russian laws regarding foreign ownership of mass media that were announced last year and come into effect from the beginning of next year. We have undertaken a thorough review of the options available to us in this context and to seek the best possible outcome for the stakeholders in the businesses and MTG as a whole,” said Jørgen Madsen Lindemann, MTG president and CEO.
He said the settlement and the earlier agreement to sell its interest in CTC Media meant that from the $123 million invested in Russia, MTG had yielded a return of $770 million.
