MTG Offloads TV Shop Europe

STOCKHOLM, May 14: Modern Times Group’s MTG Homeshopping
division has signed an agreement to sell 100 percent of TV Shop Europe to
Guthy-Renker Europe for SEK 70.3 million ($10.3 million) in cash.

The closing of the transaction is expected to take place
within two months. MTG has also committed to sell media time on Viasat channels
to TV Shop for a period of two years from the closing of the transaction.

Hans-Holger Albrecht, the president and CEO of MTG,
commented: “TV Shop was launched by MTG back in 1989, and has grown to become
one of Europe’s leading direct response television channel businesses, reaching
over 100 million homes in over 50 countries. The sale of the business to a
leading player in the DRTV industry is in line with our focus on our core
broadcasting assets and the ongoing streamlining of our operations. It will
also enable the TV Shop business to benefit from increased scale in a rapidly
consolidating industry. We are pleased to have found a new owner for TV Shop
who will be able to offer the continued attention and development that the
business deserves.”