Broadcaster CME agrees to be acquired by Czech firm PPF in $2.1 bln deal
By Jason Hovet PRAGUE (Reuters) - Investment group PPF, owned by the Czech Republic's wealthiest businessman, Petr Kellner, has agreed to buy broadcaster Central European Media Enterprises Ltd (CME) in a cash deal valued at about $2.1 billion, the companies said on Sunday.
By Jason Hovet
PRAGUE (Reuters) - Investment group PPF, owned by the Czech Republic's wealthiest businessman, Petr Kellner, has agreed to buy broadcaster Central European Media Enterprises Ltd (CME)
The deal, due to be completed in the middle of 2020 subject to shareholder and regulatory approval, will mark the exit of CME's largest shareholder, AT&T Inc
PPF will pay $4.58 per share in cash to shareholders of Nasdaq- and Prague-listed CME, which operates television stations in the Czech Republic, Bulgaria, Romania, Slovakia and Slovenia.
The valuation is a 32% premium to CME's stock price before it announced a strategic review in March, which first floated the idea of a sale. The stock has since risen by a similar magnitude.
The premium was slightly below CME's Friday closing price of $4.65, which gave the company a $1.18 billion market capitalisation.
CME will join PPF's telecoms stable, which includes O2 Czech Republic
"The acquisition ... will complement and further strengthen our telecommunications operations," Kellner, PPF's 98.9% owner, said in a statement.
"We want to leverage the natural synergies between the creation of content and its distribution with the objective of further developing our telecommunications and media businesses."
Kellner, who is No. 73 on Forbes' world billionaires list with net worth of $15.4 billion, has built PPF since the early 1990s into a group with assets exceeding 45 billion euros ranging from lenders to real estate and telecommunications in Europe and Asia. PPF owns global consumer lender Home Credit, a major player in China.
CME GROWTH OUTLOOK
CME, which AT&T inherited after it bought Time Warner in 2018, has boosted revenue and profits in recent years due to rising advertising spending, with the Czech and Romanian markets its biggest profit drivers.
It raised its core profit guidance three times this year, expecting a 15-17% rise in operating income before depreciation and amortisation (OIBDA) at constant exchange rates. It posted OIBDA of $222.7 million in 2018.
It has also slashed a debt load that once stood above $1 billion to a current net $590.3 million.
AT&T, which holds 64% of the common stock along with preferred shares that give it larger effective control of CME, said it would receive about $1.1 billion in cash at the close and be relieved of a $575 million debt guarantee.
"Given the company’s confidence in reaching a net debt-to-adjusted EBITDA ratio in the 2.5x range by the end of this year, shareholders should expect that share buybacks will be in the mix in the fourth quarter of 2019, along with continued de-levering," AT&T said.
(Reporting by Jason Hovet, additional reporting by Ismail Shakil in Bengaluru; Editing by Peter Cooney and Jane Wardell)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Guinea president 'captured', govt dissolved, claim army putschists'; attack on presidential palace repulsed, say authorities
Reports suggest that they captured President Alpha Conde and dissolved the government, bust the ground situation remains unclear
NEW YORK (Reuters) -The price of cryptocurrencies plunged and crypto trading was delayed on Tuesday, a day in which El Salvador ran into snags as the first country to adopt bitcoin as legal tender. Shares of blockchain-related firms also fell as crypto stocks were hit by trading platform outages. But the major focus was on El Salvador, where the government had to temporarily unplug a digital wallet to cope with demand.
By Joseph White and Sanjana Shivdas (Reuters) -The head of Apple Inc's car project, Doug Field, is going to work for Ford Motor Co to lead the automaker's advanced technology and embedded systems efforts, a hiring coup for Ford Chief Executive Jim Farley.