MTG completes sale of Baltic broadcast business

MTG has completed the sale of its Baltic broadcasting business to Providence Equity Partners for a total cash consideration of €100 million (SEK960 million).

The deal, which was first announced in March, is based on an enterprise value of €115 million and willresult in a preliminary net capital gain, realised in MTG’s Q4 results, of approximately SEK 580 million.

The sale includes the Baltic region’s third-largest pay TV provider, subscription and ad funded streaming services and national commercial radio stations.

It also includes MTG’s three Estonian free-to-air channels – TV3, TV3+ and TV6 – five channels in Latvia – TV3, TV3+, TV6, Kanals 2 and LNT – and three in Lithuania – TV3, TV6 and TV8.

MTG said in March that the deal was part of its plan to transform itself from “a traditional national broadcaster” into a “global digital entertainer” in line with changing consumer habits. It said it would use the proceeds of the sale as part of its transformation process.

MTG has been investing heavily in digital in recent times. Earlier this year it invested €82.6 million to increase its shareholding in mobile and browser-based games company, InnoGames, from 21% to 51%.

Back in 2015 it also acquired a 74% majority stake in Cologne-based e-sports specialist Turtle Entertainment, which operates the ESL brand.