Proposed amendments to Russian Mass Media Law

September 26 2014

Modern Times Group MTG AB (publ.) (‘MTG’ or ‘the Group’), the international entertainment group, notes the announcement from CTC Media, Inc., of which MTG owns 38%, regarding proposed amendments to the Russian law “On Mass Media”. The full text of the CTC Media announcement follows below.

MTG is carefully following the progress of the proposed amendments and analysing what potential actions may be taken, in order to protect shareholders’ interests, in the event that the law is enacted. This applies both to the shareholding in CTC Media and MTG’s other TV and broadcasting business interests in Russia.

CTC Media’s announcement reads as follows:

“Moscow, Russia – September 25, 2014 – CTC Media, Inc. (“CTC Media” or the “Company”) (NASDAQ: CTCM), Russia’s leading independent media company, has noted the proposed amendments to the Russian law “On Mass Media” that passed the first reading on September 23, 2014 in the lower house of the Russian Parliament, the State Duma. The Company notes that the proposed law, if enacted in its current form, would limit direct or indirect foreign ownership of Russian mass media businesses, and applies to both existing and future foreign ownership interests. The law would come into force on January 1, 2016, by which time, according to the existing version of the proposed amendments, each Russian mass media entity, including television broadcasters, would have to comply with the requirement that non-Russian entities and individuals in the aggregate beneficially own no more than 20% of the relevant mass media entity. Russian entities and individuals that beneficially own more than 20% of Russian mass media businesses through off-shore holding structures will have an additional year until January 2017 in which to restructure such foreign holding structures. The proposed amendments are subject to a further two readings in the Lower House and then Federation Council and Russian Federation President confirmation. The second reading is scheduled for Friday September 26, 2014.

CTC Media is a Delaware corporation that directly and indirectly owns 100% of the shares of a series of Russian legal entities that operate primarily broadcast media entertainment businesses in Russia and the CIS. CTC Media’s shares are listed on the NASDAQ stock exchange in the US and its stockholders include MTG Russia AB, a Swedish company that is 100% directly and indirectly owned by Modern Times Group MTG AB, which is a Swedish listed company, and holds approximately 39% of CTC Media’s common stock; Telcrest Investments Limited, a Cypriot private limited company that is understood to be beneficially owned by Russian entities and individuals and holds approximately 25% of CTC Media’s common stock; and a number of public stockholders including US and European institutional and individual investors, which together hold the remaining approximately 36% of CTC Media’s common stock.

CTC Media is closely monitoring these developments and evaluating their potential impact on the Company and its stockholders. At the same time, CTC Media is considering all potential actions that the Company and its stockholders may take, both in order to comply with the law if enacted and to protect their interests.”

We use cookies to analyse our traffic and render this website more user friendly.
×