Central European Media Enterprises Ltd, which includes Bulgaria’s bTV media group, announced on October 27 that it had entered into a definitive agreement to be acquired by an affiliate of PPF Group in a cash transaction valued at about $ 2.1 billion.
Under the terms of the agreement, holders of all of CME’s issued and outstanding Class A common shares will receive $ 4.58 per share.
This valuation represents a premium of about 32 per cent to CME’s share price prior to the announcement on March 25 2019 that the company was commencing a process to explore and evaluate potential strategic alternatives, according to a statement by CME.
The agreement has been approved unanimously by CME’s board of directors, on the recommendation of the special committee of the board, the statement said.
CME’s largest shareholder, AT&T Inc., has agreed to vote in favour of the transaction.
The acquisition is expected to be completed around the middle of 2020, subject to the receipt of regulatory approvals and the satisfaction of customary closing conditions. The consummation of the transaction is not subject to any financing contingencies.
The company is being advised by Allen & Company LLC and Bank of America Merrill Lynch as its financial advisors, and Covington & Burling LLP as its legal advisor.
CME is a media and entertainment company operating leading businesses in five Central and Eastern European markets with an aggregate population of approximately 45 million people.
CME’s operations broadcast 30 television channels in Bulgaria (bTV, bTV Cinema, bTV Comedy, bTV Action, bTV Lady and Ring), the Czech Republic (Nova, Nova 2, Nova Cinema, Nova Sport 1, Nova Sport 2, Nova International, Nova Action and Nova Gold), Romania (PRO TV, PRO 2, PRO X, PRO GOLD, PRO CINEMA, PRO TV International and PRO TV Chisinau), the Slovak Republic (TV Markíza, Markíza International, Doma and Dajto) and Slovenia (POP TV, Kanal A, Brio, Oto and Kino).
PPF Group, the statement said, invests in multiple market segments such as financial services, telecommunications, biotechnology, real estate and mechanical engineering.
The reach of PPF Group spans from Europe to North America and across Asia. PPF Group owns assets exceeding 45 billion euro, as of December 2018.