Russian broadcaster’s stake sale brings business in accordance with law restricting outside ownership in media.
Russian broadcaster CTC Media said on Friday it had agreed to sell a 75% stake in its working business to a company controlled by Russian billionaire Alisher Usmanov, carrying CTC into a law that restricts outside ownership of media outlets.
Sweden’s Modern Times Group and outside minority shareholders will get $200 million from a subsidiary of UTH Russia, part-claimed by Mr. Usmanov, and $55 million of free cash from CTC’s working business, CTC said in a statement.
CTC Media, which manages four stimulation channels in Russia, has been attempting to discover a buyer for its remote possessed stake since the controversial media law, which restricts outside ownership to 20% from Jan. 1, 2016, was adopted by parliament in September.
Critics say the law is gone for forcing so as to fix government control over Russia’s media landscape remote companies to surrender control of nearby television networks, magazines and newspapers. Companies such as Axel Springer SE, Finland’s Sanoma group and publishing group from Switzerland have all sold their shares in Russian media to agree with the law.
As of not long ago, around 38% of CTC Media was possessed by MTG and some 36% was free-drift, a vast share of which is accepted to be held by outside owners. The other just-more than 25% is claimed by Telcrest, Russian businessman under US sanctions.
UTH’s offered was first declared by the owners of CTC in right on time July when UTH extended an offer to Modern Times Group. The transaction to return $255 million to remote investors will be finished in the first quarter of 2016, CTC said.
Analysts say that taking after the sale of CTC interest from MTG and minorities, the company is prone to end up private and will be delisted. The law is gone for forcing so as to fix government control over Russia’s media landscape remote companies to surrender control of nearby television networks, magazines and newspapers. CTC declined to comment on possible delisting.
The company’s governing body prior considered several options on the most proficient method to consent to the administrative changes. They planning to sell MTG Group’s shares, an incomplete buyback by delisting the broadcasting business.
Taking after the sale, immediate and roundabout ownership of CTC media working businesses in Russia that would consent to the outside ownership law, CTC said in its statement.