Modern Times Group (MTG) has denied a report in the Russian media that it plans to sell its stake in the broadcaster CTC Media.

Citing a total of three sources, one “close to its foreign shareholders”, Vedomosti says that the investment bank USB sent a proposal to potential investors in CTC Media a few weeks ago.

According to CTC Media, it was incorporated as a Delaware corporation in 1989 and is listed on NASDAQ.

Its shareholder breakdown, correct as of September 30, 2013, was MTG with 39%,Telcrest Investments Ltd with 25% and the remaining 36% a free float.

Amendments to media legislation due to come into effect next year will limit the level of foreign ownership in Russian media assets to 20%.

In a statement supplied to Broadband TV News, MTG said: “The process is clear. CTC Media is working with its appointed advisers including UBS – see to – to identify, evaluate and implement actions to ensure compliance with the amended Mass Media Law and to best protect the interests of CTC Media stockholders. CTC Media is considering all potential structures in this regard, which may include corporate restructuring, franchising and licensing structures, capital reorganisation or divestments. MTG is not pursuing any separate process in relation to our holding in CTC Media, and the suggestion in a local Russian newspaper this morning that we have held discussions with CTC Media shareholder Telcrest, its shareholders or intermediaries, regarding the sale of our shareholding in CTC Media, is wrong.”