MTG: New financing, Nova sale talks
January 8, 2019
International digital entertainment group MTG has secured a SEK 1 billion (€98m) credit facility from Nordic financial group Nordea, which will provide additional funding for MTG after the spin-off and listing of Nordic Entertainment Group (NENT Group) in Q1 2019.
In addition, the previously announced agreement to sell MTG’s shareholding in Nova Broadcasting Group to PPF Group has been terminated, and MTG has entered into discussions with other interested parties regarding the sale of its shareholding in Bulgaria’s largest commercial media group.
The termination of the agreement with PPF Group follows the decision by the Bulgarian Commission for the Protection of Competition to disallow the proposed sale to PPF Group, as well as the expiration of an extended long-stop date under the sale and purchase agreement.
MTG is expected to complete its split into two companies – MTG and NENT Group – in March 2019, and Nova will remain part of MTG until a sale is completed.
The SEK 1 billion, three year revolving multi-currency credit facility can be drawn in part or full after the listing of NENT Group.
“The new credit facility will provide us with additional flexibility to continue to invest organically and via M&A, in order to develop our global digital entertainment verticals after the listing of NENT Group,” advised Jørgen Madsen Lindemann, MTG President and CEO. “The divestment of Nova is also part of this strategy and we look forward to the discussions with the new potential buyers about the future of this well-established, well-placed and well-managed business.”