Russian billionaire Alisher Usmanov has made a US$200m offer for 75% of Moscow-based broadcaster CTC Media (NASDAQ:CTCM) ahead of new foreign ownership rules.
The deal, placed through the UTH Russia broadcasting group that Usmanov co-owns with…
Russian billionaire Alisher Usmanov has made a US$200m offer for 75% of Moscow-based broadcaster CTC Media (NASDAQ:CTCM) ahead of new foreign ownership rules.
The deal, placed through the UTH Russia broadcasting group that Usmanov co-owns with partner Ivan Tavrin, would make sure it complies with Russia’s 20% cap on media foreign ownership next year.
Swedish media firm Modern Times Group is currently CTC’s largest shareholder with a 38% stake. It is being squeezed out soon after being forced to shut down Raduga TV, a Russian DTH platform, following its failure to get a licence.
Werner Klatten, chairman of CTC’s special committee, said: “We are disappointed that the change in Russian law regarding foreign ownership of television companies may require a sale transaction, but we are pleased that the efforts of the board have resulted in an offer for a potential transaction that would, if successful, allow us to secure value for our public stockholders and our largest stockholder.
“Although we cannot guarantee that we will be able to conclude this proposed transaction, or when it would be consummated, we believe this offer to be worth progressing further as a means of achieving compliance with the amended Russian Mass Media Law before year end.”
CTC manages channels across a variety of cable and satellite platforms, while UTH operates three channels in Russia.
Notably, Usmanov also controls Russia’s second largest mobile operator MegaFon, which employs Tavrin as CEO.
State-controlled telco Rostelecom was earlier reported to be considering acquiring CTC in a sale process being run by UBS.
However, CTC said yesterday that the financial adviser it hired in November to find potential buyers received no offers. It has granted UTH a period of exclusivity to work out a deal.
Cyprus-registered Telcrest Investments Limited, controlled by Russia’s Bank Rossiya, owns 25% of CTC. The bank is currently subject to US sanctions that were put in place following Russia’s annexation of Crimea.
