Modern Times Group (MTG) said that it has secured a SEK 1 billion credit facility from Nordea, to provide more funding after the spin-off and listing of Nordic Entertainment Group (NENT Group) in Q1 2019. It also announced the formal termination of its agreement to sell its 95 percent stake in Nova Broadcasting to PPF Group, after the Bulgarian Commission for the Protection of Competition disallowed it, and upon expiry of an extended long-stop date under the sale and purchase agreement.
MTG has entered into discussions with other interested parties regarding the sale of its shareholding in Nova. MTG expects to complete the split into MTG and NENT in March, and Nova will remain part of MTG until a sale is completed.
The SEK 1 billion, three year revolving multi-currency credit facility can be drawn in part or full after the listing of NENT Group. MTG CEO Jorgen Madsen Lindemann said the credit facility will provide more flexibility to continue to invest organically and via M&A.
PPF Group said it would not buy the other 5 percent of Nova from Eastern European Media Holdings, either, after the regulator's decision. In Bulgaria, PPF Group will continue to focus on developing Telenor's telecommunications assets, which it acquired as part of a deal for Telenor resources in Hungary, Montenegro and Serbia as well.
