Modern Times Group (MTG AB), the international entertainment broadcasting group, has signed an agreement to acquire 100 percent of Nova Televisia Bulgaria, owner of Nova, the second largest TV channel in Bulgaria.

 

The deal is signed for EUR 620 million in cash, on a cash and debt free basis and is subject to closing adjustments, from Antenna Bulgaria, a member of the Antenna Group.

 

Antenna Group, known as ANT1 Group, is a media company in Greece established in 1988 by Minos Kyriakou, the president and founder of Antenna Group.

 

The acquisition, as stated, is expected to create significant synergies for MTG as a media house, since the company already operates the Diema group of TV channels in Bulgaria. In addition to this, the deal is likely to also accelerate MTG’s progress towards the achievement of the five year strategic objectives that has set last year.

 

The acquisition will be financed from MTG’s existing available liquid funds and from new debt financing. The company is also in the process of arranging approximately SEK 3 billion of additional debt funding. The transaction is expected to be completed within approximately three months.

 

The Nova commercial TV channel broadcasts a wide range of local content, as well as successful international formats. Nova is broadcast under a national terrestrial free-TV license, as well as on cable and satellite networks, and is available to 99 percent of people meter panel households in Bulgaria.

 

Hans-Holger Albrecht, president and CEO of MTG, said, “The acquisition is our largest to date, and substantially strengthens our position in one of Europe’s fastest growing and most attractive broadcasting markets. It further demonstrates our commitment to expand our operations into high growth emerging markets and to extend our successful multi-channel multi-country business model.”

 

Mentioning about Nova’s growth in the Bulgarian advertising market, Albrecht said that its market position as the primary challenger to the incumbent, as well as the channel’s complementary programming mix and audience profile, fit well with MTG’s existing operations.

 

“We look forward to further accelerating the channel’s development and capitalizing on its potential,” added Albrecht.