Latvia, Legislation, Markets and Companies, Telecomunications
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Thursday, 28.03.2024, 22:13
Sale of MTG broadcasting business likely to require government's permission
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.