MTG sells Nova Group

Nordic entertainment outfit Modern Times Group (MTG) has sold its 95% stake in Eastern European television company Nova Broadcasting Group, valuing the firm at €185m (US$229m).

Jørgen Madsen Lindemann

MTG’s shares in Bulgaria-based Nova have been acquired by PPF Group, the investment company controlled by Czech businessman Petr Kellner. MTG said the proceeds would be used to invest in its Nordic entertainment, studios and global digital entertainment businesses. The sale is subject to regulatory approvals and is expected to take place during the first half of this year.

The move continues MTG’s strategy of selling off its TV assets and focusing on digital entertainment, a plan that has so far seen it offload TV channels in Russia, the Baltics, the Czech Republic, Ghana, Nigeria and elsewhere.

The deal comes shortly after Danish telecommunications firm TDC Group rowed back on its intention to take over the Nordic TV business belonging to MTG.

Nova is Bulgaria’s largest commercial media group and consists of seven TV channels and 19 online businesses that together generated SEK195m (US$24m) in operating income for the full year 2017, according to MTG. It employs 650 staff.

Jørgen Madsen Lindemann, MTG’s president and CEO, said: “We have built Nova into Bulgaria’s number one commercial media group, with 33% commercial share of viewing and ownership of some of the country’s top digital brands.

“MTG’s investments are focused on our Nordic entertainment, studios and global digital entertainment verticals, which is why we have found a new home for our Bulgarian employees with a partner that will invest in Nova’s future.

“This will bring to a close the disposal of our international entertainment operations and leaves MTG as a more focused group, which is in line with our previously stated strategy.”