MTG waives CTC stake

European broadcast giant Modern Times Group (MTG) has waived its right to buy 39.5 million shares in Russia’s leading independent TV broadcaster, CTC Media.

The block of shares, equivalent to a 25.2% stake in CTC, is now being bought by Telcrest Investments, which is part-owned by Mediaset, for US$27.097 per share.

All three firms have signed a new shareholders’ agreement, which is subject to Telcrest closing the purchase by August 23.

This agreement is valid until June 2015 and states that CTC Media will continue to have nine places on the company’s board, while MTG’s board representation and co-chairmanship of will also remain the same

Sweden-based MTG, which runs channels in European countries such as Norway, Denmark and Estonia, is still the majority shareholder in CTC Media with a 38.2% stake.