The Russian broadcaster CTC Media has received the final tranche of the purchase price of its sale of 75% of the company to UTV Management.
The amount – $42.5 million – is $7.5 million less than $50 million initially envisaged, dependent on the performance of the business in the second half of the year and agreed indemnity obligations.
The sale closed on December 23, with CTC Media then receiving $150.5 million in cash. According to the company, the total amount paid in the sale now amounts to $193.1 million.
Commenting on the development, Werner Klatten, chairman of the special committee of the board of CTC Media, said: “The management team achieved solid operating results in the second half of 2015 in a challenging and deteriorating market environment in Russia. Against this macroeconomic backdrop, this performance helped to limit the reduction in the purchase price. We look forward to completing the proposed merger transaction to return value to stockholders as soon as possible.”
CTC Media’s shareholders have approved a proposed merger transaction in which a wholly owned subsidiary of the company would merge with and into the company, with the company surviving. However, this requires a licence from the Office of Foreign Assets Control of the US Treasury Department and has not yet been received.
