Modern Times Group (MTG) has terminated an agreement to sell its stake in Bulgaria’s Nova Broadcasting Group to the Czech-owned PPF Group.
Instead, it says it has entered into discussions with other interested parties to sell its shareholding in what is one of the two main commercial media groups in the country.
MTG adds that the termination of the agreement follows the decision by the Bulgarian Commission for the Protection of Competition (CPC) to disallow the sale, as well as the expiration of an extended long-stop date under the sale and purchase agreement.
MTG also says it has secured a SEK1 billion (€97.65 million) credit facility from Nordea which will provide it with additional funding after the spin-off and listing of Nordic Entertainment Group (NENT Group) in Q1 this year.
MTG is now expected to split into two companies – MTG and NENT Group – in March, with Nova remaining part of MTG until its sale is completed.
Commenting on these developments, Jørgen Madsen Lindemann, MTG president and CEO, said: “The new credit facility will provide us with additional flexibility to continue to invest organically and via M&A, in order to develop our global digital entertainment verticals after the listing of NENT Group. The divestment of Nova is also part of this strategy and we look forward to the discussions with the new potential buyers about the future of this well-established, well-placed and well-managed business.”
