Russia’s CTC Media has announced the final terms of its cash-out merger transaction.
Due to close in the middle of this month, following a tax refund from the US Internal Revenue Service, it will see a total of $239 million distributed among the shareholders.
For its part, Modern Times Group (MTG), which previously held a 38% stake in the broadcaster, will receive $123 million in cash.
In a statement, MTG says the cash proceeds will be used to reduce its borrowing levels, and fund the ongoing development of the group’s digital video entertainment businesses.
According to Jørgen Madsen Lindemann, president & CEO, MTG: “This marks the final step in our withdrawal from those entities impacted by the change in the Russian laws regarding foreign ownership of mass media. CTC Media had already taken the necessary steps to comply with the law and is now distributing the proceeds of that process. We have invested a total of $123 million in Russia since 2001.The proceeds from the sale of our Russian and related assets, together with dividends received, is now expected to have amounted to $768 million.”
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