Central European Media Enterprises Ltd. (CME) broadcasting corporation will raise its ownership in its Romanian television operations, PRO TV, ACASA and PRO TV International to 80% following acquisition of an additional 14% interest from local partners for $20.3 million, a CME release shows.
The transaction is expected to be completed within two weeks. The deal follows the CNA (National Broadcasting Council) approval allowing PRO TV SA (the company owning the licences for PRO TV and PRO TV International) to acquire control of the licence for the Romanian channel ACASA and two other local licences.
Michael Garin, Chief Executive Officer of CME, said that an increased ownership stake in CME's Romanian television operations "allows CME's shareholders to achieve a higher return from our largest and fastest growing station group and is a strong vote of confidence in our local partner, Adrian Sarbu and his outstanding management team."
PRO TV SA will launch a new channel, PRO Cinema, on April 19, 2004. PRO Cinema will be a cable distributed network focusing solely on films and series and is targeted at an upwardly mobile urban adult audience. Eighty percent of Romanian cable companies, including the three biggest operators, have already agreed to distribute this channel throughout the country. This new channel has been internally developed by local management in Romania and is a further example of CME and its local partners' ability to expand operations as a complement to CME's acquisitions strategy in order to improve CME's audience share and revenue base.
"Next month's launch of PRO Cinema demonstrates our ability to continue building shareholder value in our existing high growth markets as we explore investment opportunities in new markets throughout Central Europe," Michael Garlin said.
PRO TV SA group controlled by CME comprises PRO TV, Acasa and PRO TV International, with a combined broadcast reach of 15.7 million people. Launched in 1995, PRO TV is a national television broadcasting network targeting an audience of urban adults 18 to 49. Launched in 1998, Acasa is a cable distributed network, which targets a mainly female audience.
Central European Media Enterprises Ltd. owns leading stations in four countries in the region (Romania, Slovenia, Slovakia and Ukraine), reaching an aggregate of approximately 70 million people. CME is traded on NASDAQ and its main shareholder is businessman Ronald Lauder.
CME concluded last year with $175.8 million turnover and $45 million operating income. CME's Romanian television operations-related turnover was of $51.1 million, up 52.5% from 2002, while operating income reached $6.3 million, up 92.3%.
crenguta.nicolae@zf.ro
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