MTG secures M&A financing

Scandinavian media outfit Modern Times Group (MTG) has secured a SEK1bn (US$112m) credit facility to fund growth and acquisitions as it prepares to formally split from entertainment division Nordic Entertainment Group (NENT Group).

Jørgen Madsen Lindemann

The three-year deal with financial outfit Nordea will provide additional funding for MTG after the formal launch of NENT Group, which is expected to take place in March.

MTG revealed last year it would be splitting itself in two, with MTG consisting primarily of its eSports and gaming interests.

NENT Group is made up of MTG’s broadcasting, streaming and distribution operations, including brands such as Viaplay, TV3 and TV6, as well as production outfits across the Nordic region and UK-based distributor DRG.

MTG added that it has entered into discussions with new parties regarding the sale of its Bulgarian operation Nova Broadcasting Group after a deal with PPF Group was terminated last year.

The original sale fell through after the Bulgarian Commission for the Protection of Competition blocked the proposed sale. Nova will remain part of MTG until a sale is completed.

Jørgen Madsen Lindemann, MTG’s president and CEO, said the credit facility would “provide us with additional flexibility to continue to invest organically and via M&A, in order to develop our global digital entertainment verticals after the listing of NENT Group.”

“The divestment of Nova is also part of this strategy and we look forward to the discussions with the new potential buyers about the future of this well-established, well-placed and well-managed business,” he added.