CTC Media announces cash consideration
CTC Media, Inc., of which MTG owns 38%, announced on April 29 that it will pay out USD 2.05 per share to its shareholders that are not subject to US sanctions. MTG holds 60,008,800 CTC Media shares and will therefore receive USD 123.0 million in cash, and thereafter retain no interest in the company or its operations. CTC Media anticipates that the transaction will close by the middle of May and the full announcement may be found at www.ctcmedia.ru/press-center/releases/.
Based on the currency exchange rates at close of business on Friday 29 April, net cash receipts of SEK 987 million would be reported in the Group’s quarterly results cash flow statement. The transaction would give rise to a total negative non-cash impact of SEK 1.1 billion in the ‘net income from discontinued operations’ line of the Group’s quarterly results income statement. This is mainly due to the anticipated accumulated currency translation differences of approximately SEK 1.0 billion, which have previously been booked to Group equity and, to a lesser extent, the adjustment to the fair value of the holding when compared to the balance sheet at the end of Q1 2016.
The cash proceeds will be used to reduce MTG’s borrowing levels, and fund the ongoing development of the Group’s digital video entertainment businesses.
“This marks the final step in our withdrawal from those entities impacted by the change in the Russian laws regarding foreign ownership of mass media. CTC Media had already taken the necessary steps to comply with the law and is now distributing the proceeds of that process. We have invested a total of USD 123 million in Russia since 2001.The proceeds from the sale of our Russian and related assets, together with dividends received, is now expected to have amounted to USD 768 million.”
Jørgen Madsen Lindemann, President & Chief Executive Officer
MTG (Modern Times Group MTG AB (publ.)) is a leading international entertainment group. Our shares are listed on Nasdaq OMX Stockholm (‘MTGA’ and ‘MTGB’). The information in this announcement is that which MTG is required to disclose according to the Securities Market Act and/or the Financial Instruments Trading Act, and was released at 08:00 CET on 2 May 2016.