CME takes stake in Ukraine's 1+1
Central European group assumes control of Studio
"Upon completion of this transaction, CME will own 90% of Studio 1+1 and will have a right to acquire the remaining 10%. Currently CME holds 60% of Studio 1+1," Central European Media Enterprises said in a statement.
The deal is worth some $219 million for the first 30% with up to $109 million for the final 10% depending on when the option is exercised, CME said. The deal should be completed by June and will be funded from current cash and credit facilities, the company said.
The three minority owners in Studio 1+1 will be paid in cash or cash and shares. They are Igor Kolomoisky, Boris Fuchsmann and Alexander Rodnyansky, who is CEO of Russia entertainment network CTC and is serving on the international jury at the Berlin Film Festival.
CME CEO Michael Garin said: "Ukraine is our largest market in terms of population. We are convinced that in the next few years Ukraine will also become the largest market in terms of our revenue and earnings. As we have proven in other countries, full control is a critical step towards delivering outstanding performance and strengthening our market position."
CME hit the headlines some years ago when its Prague station TV Nova was effectively hijacked by local management.
After lengthy and tenacious wrangling CME eventually won the station back and a court-ordered multi-million-dollar compensation.
