MTG completed the sale of its 50 percent stake in Swedish cable TV company Sappa to Finnish telecom operator Anvia for an enterprise value (on a 100 percent basis) of SEK 135 million. Sappa delivers TV channel packages to 350,000 Swedish households through cable and IPTV networks. Sappa was founded as Svensk Program Agentur (SPA) in 1994 through the merger of several different local cable (SMATV) operators. MTG acquired 50 percent of the business in 1999. The company name was changed to Sappa in 2010. Anvia has acquired 100 percent of the outstanding shares in Sappa from MTG (50 percent) and SPA Holding (50 percent).
Sappa generated revenue of SEK 248 million in 2014, and an operating profit (EBIT) of SEK 15.7 million. MTG has accounted for its 50 percent participation in the earnings as associated company income in the Pay-TV Nordic business. The resulting capital gain from the sale of approximately SEK 70 million will be reported as a non-recurring item in MTG’s Q1 2015 results.
