The Office of Foreign Assets Control of the US Treasury Department has issued a licence authorising CTC Media to proceed with its previously announced sale.
In a statement, the Russian broadcaster, in which Modern Times Group (MTG) holds a 38% stake, says that its board of directors is currently “finalising preparations for the merger, and in particular is awaiting the receipt of a tax refund from the US Internal Revenue Service, which will form part of the consideration to stockholders in such merger”.
Assuming receipt of the tax refund, the merger should be completed early in Q2 this year.
Although the board of directors approved the sale in late 2015, it still required the permission of the US authorities as CTC Media is a registered company.
Furthermore, the Telcrest, one of its shareholders is subject to US sanctions.
