MTG sells Baltic broadcasting businesses
March 17, 2017
MTG has signed an agreement to sell its free-TV, pay-TV, digital and radio businesses in the Baltic region to Providence Equity Partners, a premier global asset management firm that is the owner of Bite, the Lithuanian and Latvian mobile operator. The transaction values 100 per cent of the business at an enterprise value of €115 million (SEK 1,094 million), equivalent to 12.0x FY 2016 EBIT. The Baltic businesses have been reported within the International Entertainment segment and contributed with SEK 1,024 million in sales and SEK 91 million in operating income (EBIT) for the full year 2016. Closing is subject to regulatory approvals.
MTG says the sale reflects its ongoing transformation from a traditional national broadcaster into a global digital entertainer, capitalising on rapid changes in consumers’ media consumption habits. MTG will use the proceeds from the sale to transform the company further.
Jørgen Madsen Lindemann, MTG President & CEO: “We have been in the Baltic region for two decades, and our very dedicated and professional colleagues have built a successful business here. I would like to take this opportunity to thank our local team for an extraordinary performance over the years. We are on a journey to build an even stronger presence in the global digital arena, and I am happy that we have found a buyer that shares our view of the potential of the Baltic businesses. Our Baltic colleagues can look forward to a new era that taps the full possibilities of the Baltic media market.”
Karim Tabet, Managing Director at Providence commented: “MTG’s Baltic broadcasting businesses are all leaders in their respective areas and we’re excited to partner with such a talented group of people to grow the company together. After our acquisition of Bite in 2016, this transaction highlights Providence’s continued commitment to investing in the Baltic region.”
Robert Sudo, Managing Director at Providence added: “Lithuania, Latvia and Estonia are all among the fastest growing countries in the EU. The business friendly environment combined with a highly skilled workforce make the Baltics an exciting region for us. We are looking forward to working together with MTG Baltic’s management and employees over the coming years.”