The richest man in Russia will buy STS Media with a five-fold discount
Alisher Usmanov and Ivan Tavrin. Photo: Kommersant
Alisher Usmanov, co-owner of UTV holding, together with his partner, Ivan Tavrin, agreed to purchase 75% of CTC Media's operating business. UTV holding will pay $ 200 million for these assets, writes RBC. At the same time, the deal has already reached the final stage.
Now CTC Media is required to bring its ownership structure in accordance with the laws of the Russian Federation. Namely, with amendments to the law “On Mass Media” prohibiting foreigners directly or indirectly from owning more than 20% in any Russian media.
The problem is that now the largest shareholder of CTC Media Inc., registered in the US state of Delaware, is the Swedish company Modern Times Group (MTG) with a 38.53% stake. Another 36% is traded on the NASDAQ. And the remaining 25.4% belong to the Cypriot company Telcrest.
Now the buyer of the company must obtain permission to conduct the transaction from the Federal Antimonopoly Service (FAS), and the holding has already submitted an application. Interestingly, UTV does not have $ 200 million, so the purchase will be carried out with borrowed funds.
Currently, the capitalization of CTC Media has reached a minimum. Before the law on mass media was amended, that is, on September 17, 2014, the company's capitalization amounted to almost $ 1.5 billion.