MTG sells Nova Group
Details
Joseph O'Halloran
| 19 February 2018

Aiming to put behind it the fiasco of its aborted proposed sale to TDC Group and carry on with its strategic plan, Nordic pay-TV firm MTG is to sell its 95% shareholding in Bulgaria's Nova Broadcasting Group to investment company PPF Group.

The transaction is subject to regulatory approvals but is expected to take place during H1 2018. It values the whole Nova asset set at an enterprise value of €185 million and MTG says that the proceeds will be used to invest in the company's Nordic entertainment, studios and global digital entertainment businesses.

Nova is Bulgaria's largest commercial media group and comprises seven TV channels and 19 online businesses that together generated €100 million in sales and €20 million in operating income for the full year of 2017. MTG first entered Bulgaria in 2007 when investing in Balkan Media Group Limited, which operated the Diema TV channels, and then later acquired Nova in 2008.

Commenting on the move, Jørgen Madsen Lindemann, MTG president and CEO said: "We have built Nova into Bulgaria's number one commercial media group with 33% commercial share of viewing, and ownership of some of the country's top digital brands. Under the excellent leadership of Didier Stoessel and his management team, Nova has evolved very rapidly into the market leading digital entertainment group, and I would like to thank all those that have made this possible. MTG's investments are focused on our Nordic Entertainment, Studios and global digital entertainment verticals, which is why we have found a new home for our Bulgarian employees with a partner that will invest in Nova's future...This will bring to a close the disposal of our international entertainment operations and leaves MTG as a more focused group, which is in line with our previously stated strategy."