MTG divests controlling stake in Czech TV assets
Details
Joseph O'Halloran
| 26 January 2017

As part of its plans to invest further in digital transformation, international digital entertainment and pay-TV provider Modern Times Group (MTG) has divested its 50% shareholding in FTV Prima Holding in the Czech Republic.

The stake has been bought by Czech joint venture Denemo Media, owned by Denemo Invest (75% ownership) and GES Media Asset (25%) in a deal valued at €237.4 million (approximately SEK2.255 billion). FTV Prima Holding contributed SEK1.226 billion in sales and SEK201 million of operating income (EBIT) for the 12 months to the end of Q3 2016 and MTG’s half-share in the company was acquired for €87 million in 2005. The total cash return on the investment, including dividends received and the sale price is expected to amount to approximately SEK1.6 billion.

The sale is the second divestment in recent weeks. In December 2016 MTG announced that it had sold its African production and broadcasting business to Kwesé Free TV, the media arm of telecom group Econet.

Commenting on FTV Prima Holding, MTG president and CEO Jørgen Madsen Lindemann said: “Prima Group is a great business with a very talented team delivering popular news and entertainment programming. Over the past 11 years, our local Czech partner and we have transformed the Czech media landscape by launching a wide variety of channels and services, and establishing Prima as the go-to brand for information and entertainment. We wish the team continued success with our local partner and the new investor.”

The CEO also confirmed that MTG was considering using the proceeds from the sale to increase its ownership in global online games developer and publisher InnoGames from 21% to 51%, based on the same enterprise value of €260 million for 100% of the company that MTG paid for its initial investment at the end of 2016.