MTG Sells Baltic TV Businesses for €115 Million

STOCKHOLM: MTG has inked a deal to sell its free-TV, pay-TV, digital and radio businesses in the Baltic region to Providence Equity Partners.

The cash transaction values 100 percent of the business at an enterprise value of €115 million ($124 million). The sale is part of MTG’s ongoing transformation from a traditional national broadcaster into a global digital entertainer—MTG will use the proceeds from the sale to transform the company further.

Equity Partners is a global asset-management firm that is the owner of Bite, the Lithuanian and Latvian mobile operator. Through the transaction, the company gains the largest TV-channel portfolio in all three Baltic countries with a combined 48.6 percent commercial share of viewing. This includes three TV channels in Estonia (TV3, TV3+, TV6), five channels in Latvia (TV3, TV3+, TV6, Kanals 2, LNT) and three in Lithuania (TV3, TV6, TV8).

Jørgen Madsen Lindemann, MTG’s president and CEO, said: “We have been in the Baltic region for two decades, and our very dedicated and professional colleagues have built a successful business here. I would like to take this opportunity to thank our local team for an extraordinary performance over the years.

“We are on a journey to build an even stronger presence in the global digital arena, and I am happy that we have found a buyer that shares our view of the potential of the Baltic businesses. Our Baltic colleagues can look forward to a new era that taps the full possibilities of the Baltic media market.”

Karim Tabet, managing director at Providence, added: “MTG’s Baltic broadcasting businesses are all leaders in their respective areas and we’re excited to partner with such a talented group of people to grow the company together. After our acquisition of Bite in 2016, this transaction highlights Providence’s continued commitment to investing in the Baltic region.”

Robert Sudo, managing director at Providence, remarked: “Lithuania, Latvia and Estonia are all among the fastest growing countries in the EU. The business-friendly environment combined with a highly skilled workforce make the Baltics an exciting region for us. We are looking forward to working together with MTG Baltic’s management and employees over the coming years.”