MTM sells TV2 stake to Hungarian start-up

Hungary’s TV2 has come under new ownership after the broadcaster’s ceo Gabor Kereszty bought out MTM Communications’ original stake in the joint-venture with SBS Broadcasting.

Kereszty, together with TV2 board member, Dr Gabor Benke, has set up a new company called VT2, which has bought out MTM Communications’ 16% share of the TV2 business.

Financial terms of the deal were not disclosed but the transaction also gives Kereszty and Benke a 27.1% voting interest in TV2. SBS has stated, however, that as part of the arrangement it has paid $5m for the right to acquire or assign the TV2 shares in the future.

The shift in ownership was prompted by the conclusion of SBS’s original partnership with MTM Kommunikációs, dating back to May 2002, under which SBS was obliged to purchase or assign the 16% of TV2 shares following renewal of the station’s broadcast licence. This happened late last month, allowing VT2 to step in.

SBS currently owns a 49% voting interest and 81.5% economic interest in TV2. Hungarian media laws prohibit anyone from holding more than 49% of the voting rights in TV2 and require that a Hungarian person or legal entity own at least 26% of the voting rights in TV2.

As such, SBS is prohibited from acquiring the TV2 shares, but may assign them to another Hungarian partner in the future other than VT2.