HAMILTON, Bermuda, July 2 /PRNewswire-FirstCall/ -- Central European Media Enterprises Ltd. ("CME") (NASDAQ/Prague Stock Exchange: CETV) announced today that it has entered into an agreement with Igor Kolomoisky, a prominent Ukrainian businessman and CME shareholder and Director. Following an injection of $100 million in cash and the contribution of 100% of the TET TV channel into Studio 1+1 Group, Mr. Kolomoisky will become a 49% shareholder in CME's Ukrainian operations. The transaction is expected to close by the end of the third quarter of 2009, subject to receipt of regulatory approvals.
The $100 million cash investment will be used to finance the activities of Studio 1+1, Kino and TET. The addition of the TET TV will enhance CME's multichannel strategy in Ukraine. Mr. Kolomoisky has also granted CME a put option to sell its 51% interest to him for a price of $300 million in cash. The put option can be exercised for one year from the closing of the transaction.
Adrian Sarbu, 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, 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."
TET TV has been operating in Ukraine since 1994. It has a technical reach of 92% and all day audience share of about 2% in Q1 2009 in its 18 - 54 target demographic group. TET TV holds a satellite broadcasting license, eight terrestrial broadcasting licenses and two radio broadcasting licenses. According to unaudited figures provided by the management of the TET TV channel, it had revenues of approximately $12 million in 2008.
CME is a broadcasting company operating leading networks in seven Central and Eastern European countries with an aggregate population of approximately 97 million people. CME's television stations are located in Bulgaria (Pro.bg and Ring.bg), Croatia (Nova TV), Czech Republic (TV Nova, Nova Cinema and Nova Sport), Romania (PRO TV, PRO TV International, Acasa, PRO Cinema, Sport.ro and MTV Romania), Slovakia (TV Markiza), Slovenia (POP TV and Kanal A) and Ukraine (Studio 1+1, Studio 1+1 International and Kino). CME is traded on the NASDAQ and the Prague Stock Exchange under the ticker symbol "CETV".
Forward Looking Statements
This press release contains forward-looking statements relating to our Ukraine operations. For these statements and all other forward-looking statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently subject to risks and uncertainties, many of which cannot be predicted with accuracy or are otherwise beyond our control and some of which might not even be anticipated. Future events and actual results, affecting our strategic plan as well as our financial position, results of operations and cash flows, could differ materially from those described in or contemplated by the forward-looking statements. Important factors that contribute to such risks include, but are not limited to, the effect of the credit crisis and economic downturn in our markets as well as in the United States and Western Europe; decreases in television advertising spending and the rate of development of the advertising markets in the countries in which we operate; the impact of any additional investments we make in our Bulgaria, Croatia and Ukraine operations; our effectiveness in implementing our strategic plan for the Studio 1+1 group in Ukraine; and our ability to acquire necessary programming and attract audiences.
For further information visit: www.cetv-net.com.
SOURCE Central European Media Enterprises Ltd.
