MTG is to sell its 95 per cent shareholding in Nova Broadcasting Group in Bulgaria to Advance Media Group. The transaction puts an enterprise value of €185 million (SEK1.92bn). The transaction is subject to regulatory approval, and the proceeds will be used to develop MTG’s global digital entertainment verticals through organic investment and M&A, says the vendor
Nova is Bulgaria’s largest commercial media group and comprises seven TV channels, as well as complementary online businesses that reach on average 74 per cent of the Bulgarian population every month. Nova generated SEK 1.154 billion of sales and SEK 223 million of operating income (EBIT) for the full year 2018, and employs 650 people.
MTG first entered Bulgaria in 2007 by investing in Balkan Media Group Limited, and then acquired Nova in 2008 before merging the two businesses in 2009.
Jørgen Madsen Lindemann, MTG President & CEO said the deal would ensure the continued development of Nova, which CEO Didier Stoessel and his team had grown into Bulgaria’s leading commercial media group. “I would like to thank everyone who has made this sustained success possible. This transaction is in line with our strategic decision to find new owners to invest in our international entertainment operations, while we focus on our global digital verticals. Following the forthcoming distribution of NENT Group, MTG will be a standalone strategic operational and investment holding company focused on esports and online gaming.”
The sale of Nova will result in a net capital gain of approximately SEK 1.3 billion.