CME Receives $100 Million Investment

HAMILTON: Ukrainian tycoon Igor Kolomoisky has made a $100-million investment in Central European Media Enterprises (CME) and is merging his TET TV station into CME’s Studio 1+1 Group.

With the transactions, expected to close by the end of Q3, Kolomoisky becomes a 49-percent shareholder in CME’s Ukrainian operations, which will now include three stations: Studio 1+1, Kino and TET. The $100 million cash investment will be used to finance the activities of the three outlets. Kolomoisky has also granted CME a put option to sell its 51-percent interest to him for $300 million in cash. The put option can be exercised for one year from the closing of the transaction.

Adrian Sarbu, the president and COO of CME, commented: "I am very pleased with our extended partnership with Igor Kolomoisky which will enable us to continue developing our operations in Ukraine and will add further to our liquidity. I’ve been working with Igor since 2007 and I have great respect for his in-depth knowledge of Ukraine. This investment confirms our view that Ukraine will be a powerful growth engine for CME in the future."

Igor Kolomoisky, a director of CME, added: "CME is one of the strongest and most respected broadcasters in Europe. I am pleased to be participating in the future expansion and development of Studio 1+1 Group. As the Ukrainian economy returns to growth, our combined operations are positioned to be the fastest growing business in CME’s portfolio."