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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 09:41

MTG likely to close deal selling TV3 and Viasat to Providence soon

BC, Vilnius, 06.03.2017.Print version
The Swedish media group Modern Times Group (MTG) is likely to conclude talks shortly on the sale of its Baltic businesses to global private equity firm Providence Equity Partners, LETA/BNS has learned.

Sources told BNS that Providence Equity Partners is expected to be the buyer.


Shares of TV3 and Tele-3 Radijas are to be registered with the Lithuanian Central Securities Depository on Tuesday, which signals that a deal is about to be closed.


TMTFinance.com also reported in early March that talks on the sale of MTG's Baltic business were in an advanced stage, with the combined value of the assets, including the Viasat and TV3 brands in Lithuania, Latvia and Estonia, said to be "somewhere between" 150 mln to 200 mln euros. According to the website, Providence Equity Partners "is understood to be putting together a financing package to back the acquisition."


"It isn't clear if Providence is holding exclusive talks with MTG, but the firm is said to be the frontrunner," TMTFinance.com wrote.


According to unofficial information, MTG started to look for a new owner for its Baltic businesses last fall. The group reportedly wants to sell its media channels in the three Baltic countries as one package and SEB has been authorized to look for a buyer.


MTG's sales in the Baltic countries, the Czech Republic and Bulgaria grew 11.8% to 2.53 bLn Swedish kronor in 2015. The group's profit in the television segment in the region increased 44.7% to 288 mln kronor.


Estonian businesses of MTG include Viasat Eesti, TV channels TV3, TV6 and 3+, as well as radio channels Power Hit Radio and Star FM. MTG's market share among 15-49-year-old viewers was 40.3% in 2015, which is on the same level as in the previous year.






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