Czechia's PPF Group is expanding in the media sector with an agreement to acquire Central European Media Enterprises for USD 2.1 billion. The company will pay USD 4.58 per share for the broadcast group, a 32 percent premium to CME's share price in March, when it announced it was looking for buyers.
CME said it was in contact with a "significant number of strategic and financial parties" during its review of strategic alternatives. Michael Del Nin and Christoph Mainusch, Co-CEOs, said the sale "is the right one for our shareholders and a satisfying conclusion to one of the most successful turnarounds of a leading media company in recent times"
AT&T, CME’s largest shareholder, has agreed to sell its stake and will receive USD 1.1 billion cash and be relieved of a USD 575 million debt guarantee. AT&T acquired the stake with the acquisition of Time Warner in 2018.
The acquisition is expected to be completed around the middle of 2020, subject to regulatory approvals.
CME's operations broadcast 30 television channels in Bulgaria (bTV), the Czech Republic (Nova), Romania (PRO), the Slovak Republic (TV Markiza) and Slovenia (POP TV, Kanal A).
PPF said it expects to leverage synergies with its telecom businesses in Eastern Europe and between the creation of content and its distribution. The company said CME is a "healthy and well-run organization and we do not intend to make any significant changes to its operations".
PPF owns O2 Czech Republic and also acquired Telenor's eastern European operations. An attempt to acquire the Bulgarian broadcaster Nova last year was blocked by competition authorities.
