Published: 15.57 Europe/London, March 28, 2011
Central European Media Enterprises (CME) has agreed to buy the leading Czech and Slovak content rights distribution company Bontonfilm.
Under the terms of the deal, which is being undertaken through the wholly owned CME subsidiary CME Media Pro, CME will acquire 100% of Bontonfilm from Bancroft and minority shareholders on a debt-free basis for $11 million (€7.81 million) in cash, to be paid at closing, subject to a minimum cash balance of CZK36 million (€1.47 million) remaining in Bontonfilm.
Up to $1.5 million may be payable to the sellers in December this year, depending on a number of factors including OIBDA achieved by Bontonfilm for 2010.
The latter had unaudited revenues of around $37 million and OIBDA of around $2.6 million in 2010.
The deal, which has to be approved by the Czech Anti-Monopoly Office, is expected to close at the end of the second quarter.