Latvia, Legislation, Markets and Companies, Telecomunications

International Internet Magazine. Baltic States news & analytics Wednesday, 23.05.2018, 21:56

Sale of MTG broadcasting business likely to require government's permission

BC, Riga, 17.03.2017.Print version
The National Electronic Mass Media Council has not yet received information about the sale of Modern Times Group (MTG) broadcasting businesses in Estonia, Latvia and Lithuania to Providence Equity Partners, as the council's chairwoman Dace Kezbere told LETA.

She said that the Electronic Mass Media Council would be able to comment on the acquisition deal after receiving information about the deal and further development strategy of MTG Baltic broadcasting business, said Kezbere.

She went on to say that the Electronic Mass Media Council was expecting the Cabinet of Ministers to grant permission for the deal, given new legislation on enterprises important for national security that is currently reviewed in parliament. The amendments will likely come into force before the Competition Council issues its opinion about the sale of MTG.

As reported, MTG has sold its broadcasting businesses in Estonia, Latvia and Lithuania to Providence Equity Partners, a premier global asset management firm, MTG announced on Friday.

According to the press release, the cash transaction values 100 % of the business at an enterprise value of EUR 115 mln, and the sale reflects MTG's ongoing transformation from traditional national broadcaster into a global digital entertainer.

The closing of the deal is subject to regulatory approvals.

MTG will use the proceeds from the sale to transform the company further.

MTG has been operating in Latvia since 1998 and owns five TV channels (TV3, TV3+, TV6, Kanals 2 and LNT) here as well as a radio station, StarFM, and Internet portals Tvplay and Skaties. MTG also owns TV company Viasat Eesti and three TV channels (TV3, TV3+, TV6) in Estonia, and runs TV channels TV3, TV3+, TV6 and Viasat Sport Baltic in Lithuania.

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