MTG (Modern Times Group), an international digital entertainment group, is selling a 50 percent shareholding in FTV Prima Holding in the Czech Republic for 11.2 times trailing twelve-month EBIT and total cash return of two times its original investment.
MTG is considering using the proceeds to increase its stake in InnoGames from 21 to 51 percent. It reflects MTG’s ongoing transformation from a traditional broadcaster into a global digital video entertainer.
MTG has signed an agreement to sell its 50 percent shareholding in FTV Prima Holding to Denemo Media. The cash transaction values 100 percent of FTV Prima Holding at EUR 237.4 million (approximately SEK 2.255 billion). MTG has fully consolidated FTV Prima Holding, which contributed SEK 1.226 billion in sales and SEK 201 million of operating income (EBIT) for the twelve months to the end of Q3 2016. Closing is subject to local regulatory approval and expected in Q1 2017.
MTG is considering using the proceeds from the sale to increase its ownership in InnoGames from 21 to 51 percent, based on the same enterprise value of EUR 260 million for 100 percent of the company that MTG paid for its initial investment at the end of 2016. MTG would then fully consolidate InnoGames.
MTG acquired 50 percent of FTV Prima Holding in 2005 for EUR 87 million (SEK 820 million) in cash. The total cash return on the investment, including dividends received and the sale price, is expected to amount to approximately SEK 1.6 billion.
Denemo Media is a Czech joint venture between Denemo Invest (75-percent ownership) and GES Media Asset (25-percent ownership). Denemo Invest is a subsidiary of Alphaduct, which is owned by Czech businessman Vladimir Komar. GES Media Asset is part of GES Group, which already owns 50 percent of FTV Prima Holding.
