$100 million and 100% of TET TV to be contributed to CME's Ukraine operations
Igor Kolomoisky to become 49% shareholder of the expanded Studio 1+1 Group
HAMILTON, Bermuda, July 2 /PRNewswire-FirstCall/ -- Central European Media Enterprises Ltd. ('CME') (NASDAQ/Prague Stock Exchange: CETV) announced today that it has entered into an agreement with Igor Kolomoisky, a prominent Ukrainian businessman and CME shareholder and Director. Following an injection of $100 million in cash and the contribution of 100% of the TET TV channel into Studio 1+1 Group, Mr. Kolomoisky will become a 49% shareholder in CME's Ukrainian operations. The transaction is expected to close by the end of the third quarter of 2009, subject to receipt of regulatory approvals.
The $100 million cash investment will be used to finance the activities of Studio 1+1, Kino and TET. The addition of the TET TV will enhance CME's multichannel strategy in Ukraine. Mr. Kolomoisky has also granted CME a put option to sell its 51% interest to him for a price of $300 million in cash. The put option can be exercised for one year from the closing of the transaction.
Adrian Sarbu, President and COO of CME, commented: 'I am very pleased with our extended partnership with Igor Kolomoisky which will enable us to continue developing our operations in Ukraine and will add further to our liquidity. I've been working with Igor since 2007 and I have great respect for his in-depth knowledge of Ukraine. This investment confirms our view that Ukraine will be a powerful growth engine for CME in the future.'
Igor Kolomoisky, Director of CME, added: 'CME is one of the strongest and most respected broadcasters in Europe. I am pleased to be participating in the future expansion and development of Studio 1+1 Group. As the Ukrainian economy returns to growth, our combined operations are positioned to be the fastest growing business in CME's portfolio.'
TET TV has been operating in Ukraine since 1994. It has a technical reach of 92% and all day audience share of about 2% in Q1 2009 in its 18 - 54 target demographic group. TET TV holds a satellite broadcasting license, eight terrestrial broadcasting licenses and two radio broadcasting licenses.
