Swedish media concern Modern Times Group (MTG) has sold its broadcast business organizations in the Baltic investment company private capital Providence Equity Partners. The headquarters of the company located in the USA, in Providence, Rhode Island, reported mixnews.lv.
Of MTG, applicable in Latvia to 1998 years TV3 owned TV channels, TV3 +, TV6, LNT, «Channel 2» and radio station Star FM, as well as internet portals and Tvplay Skaties. Estonia belongs to MTG Viasat Eesti TV and TV3 TV, TV6 and TV3 +, in Lithuania - TV3 TV, TV3 +, TV6 and Viasat Sport Baltic. The transaction includes the sale of 100% business share of 115 million euros, which corresponds to the value of the enterprise. It is reported that the decision to sell the Baltic Business "follows from the changes taking place in MTG - transfer business focus from traditional broadcasting organizations on a global digital entertainment environment."
Providence Equity Partners already owns mobile operator Bite in Lithuania and Latvia. "Fully transaction will only be completed after the approval of the local regulatory institutions", - stated the representatives of the company. "We have been working for almost twenty years, the region, and our professional and loyal colleagues created a very successful business here. I would like to take this opportunity to thank the Latvian, Lithuanian and Estonian teams for their excellent work over the years. I am glad that we have found a buyer, whose understanding of the potential of the local business in line with our - and our colleagues will be able to use all the features of the Baltic media market ", - said President and CEO of MTG Jørgen Madsen Lindemann.
"Baltic broadcasting organization MTG hold leading positions in their respective territories, and we appreciated the fact that our partners - very talented people with whom we can continue to develop this business. Buy Bite in 2016 year, and the deal suggests that Providence has a long-term investment plans in the Baltic region ", - said the executive director of the Providence Karim Thabet.
Meanwhile, the Latvian National Council for Electronic Media (NEPLP) has not yet received an application for a change of owners of broadcasting organizations. This was reported by the chairman of NEPLP Dace Kezbere. "Once the application is received and NEPLP acquainted with the strategy of further development of the Baltic broadcasting organizations, it will be possible to comment on the deal more," - added Kezbere. Before we evaluate the deal, NEPLP plans to wait for permission to her Cabinet. It is likely to be required on the basis of the planned amendments to the two laws are being considered by the Seimas. The amendments provide give the government the right to oblige the owners of the companies important to the national security to sell its stake, if it is significant.
Member of the National Council for Electronic Media Gunta Lidaka on Radio Baltkom announced that MTG decided to sell his business Providence Equity Partners is not unique deals in the market and meets all the global trends. "This trend is now all over the world: the distributors of telecommunications services want to get content into their own hands. Here we are not the first and not unique. Content MTG is one of the strongest in Latvia ", - she noted. Lidaka also doubts that the decision to sell the Latvian leading TV channels Americans could be triggered by geopolitical situation. "Basically, it's defined business interests. I think that the combination of some platforms with different content will be in the future ", - the expert said.
Journalist Lato Lapsa also of the opinion that the purchase of proved financial interest. "Definitely, this group bought to do in the future for a sweet buyers. Twenty-first century requires new approaches and can be soldered to the telecom and mobile communications, "- said Lapsa.