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Friday, 26.04.2024, 02:28
Government authorizes BITE Lietuva to acquire TV3, LNT and Star FM
The deal still has to clear the Competition Council.
According to the government, the three Latvian media hold a substantial
share of the Latvian media market and are important to national security of
Latvia. According to the National Security Law, obtaining decisive influence
(or 100% of shares) in such companies requires the Cabinet of Ministers'
permission.
Said provision in the National Security Law came into force on March 29,
and this is the first such acquisition deal that had to be considered by the
government.
Before taking the decision, the Cabinet analyzed information provided by
national security authorities, BITE
Lietuva, and other sources.
According to the State Chancellery, based on information available to the chancellery,
BITE Lietuva is acquiring all MTG Broadcasting AB companies in Latvia.
The Competition Council has been looking into the merger report since
end-May.
As reported, MTG announced at
end-March that it had sold its broadcasting businesses in Estonia, Latvia and
Lithuania to Providence Equity Partners.
MTG said the cash
transaction values 100% of the business at an enterprise value of EUR 115
million, and the sale reflects MTG's
ongoing transformation from traditional national broadcaster into a global
digital entertainer.
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.
Providence Equity Partners controls the Baltic mobile telecommunications company Bite Group and has a 28.5% stake in the Internet and cable
television company Baltcom.