CME Offloads Ukraine Operations

HAMILTON: Central European Media Enterprises is selling off its interest in the Studio 1+1 and Kino channels in the Ukraine to Igor Kolomoisky’s Harley Trading Limited for $300 million.

Harley Trading will take 100 percent ownership of CME’s operations in the Ukraine for $300 million in cash plus an estimated $19 million to fund cash expenses of the Studio 1+1 group between signing and closing of the transaction. The purchaser will make a payment of $30 million to CME on February 1, and the balance of the purchase price will be paid at closing, expected in the second half of April 2010.

Adrian Sarbu, the president and CEO of CME, commented: “The sale of our Ukrainian operations is the best strategic option for CME in the current environment. It will allow us to concentrate on our existing operations in the European Union and EU accession countries. The sale will provide us with greater operational and strategic flexibility, increase our liquidity and sharpen our focus on developing our broadcasting, internet and content business. I look forward to continuing to work with Igor Kolomoisky, who will remain a director and shareholder of CME.” 

Kolomoisky added: “I have been working with CME for three years and I have great respect for their achievements in the Ukrainian market. CME built a strong brand with Studio 1+1 in Ukraine and developed a lot of talent over the last 13 years. I will continue to develop the TV stations successfully managed by CME in the past.”