Media and entertainment company Central European Media (CME) is selling its broadcasting networks in Croatia and Slovenia for €230 million (US$262.5 million).
Slovenia Broadband, a subsidiary of United Group, which is majority-owned by the U.S. investment firm KKR, has agreed to purchase CME’s Nova TV in Croatia and Pop TV in Slovenia. The transaction will be completed by end of year, subject to certain closing conditions and regulatory approvals.
The proceeds from the transaction will be used to repay a €250.8 million term loan due 2018 and will help reduce the company’s borrowing costs. The cash generated from the Slovenian and Croatian operations will be offset by an approximate savings of at least US$30 million of annual interest.
“This represents a transformational moment in the history of CME. We have always had a great set of assets, and this transaction underscores the enduring attractiveness of broadcasters in the region,” said Michael Del Nin (pictured), co-chief executive officer, in a statement.
CME operates in six Central and Eastern European markets and broadcasts 36 television channels including bTV in Bulgaria; Doma in Croatia; Nova in the Czech Republic; and MTV Romania in Romania.