- MTG sells its 95% shareholding in Nova Broadcasting Group in Bulgaria to Advance Media Group
- All cash transaction values 100% of Nova at an enterprise value of EUR 185 million (approximately SEK 1,917 million)
- Closing subject to regulatory approval and expected to take place during Q2 2019
Nova is Bulgaria’s largest commercial media group and comprises 7 TV channels, as well as complementary online businesses that reach on average 74% of the Bulgarian population every month. Nova generated SEK 1,154 million 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: “This deal with Advance Media Group will ensure the continued development of Nova, which CEO Didier Stoessel and his team have 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 1,300 million.
Citigroup Global Markets is acting as financial adviser to MTG on the sale.
About Advance Media Group
Advance Media Group EAD is a subsidiary of Advance Properties OOD, which owns 117 companies across 23 countries. Advance Properties’ portfolio companies operate in more than 10 industries including pharmaceuticals, shipping, port operation, real estate and power generation. The group is jointly owned by Bulgarian businessmen Kiril Domuschiev and Georgi Domuschiev.
NOTES TO EDITORS
MTG (Modern Times Group MTG AB (publ)) is a leading international digital entertainment group and we are shaping the future of entertainment by connecting consumers with the content that they love in as many ways as possible. Our brands span TV, radio and next generation entertainment experiences in esports, digital video content and online gaming. Born in Sweden, our shares are listed on Nasdaq Stockholm (‘MTGA’ and ‘MTGB’).
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