Czech billionaire takes over biggest media company in RO

Czech billionaire Petr Kellner, through his PPF Group, has entered an agreement to pay U.S. group AT&T USD 2.1 billion for 64% of the shares of regional media group CME, plus 75% of its preferred shares (that entitles the owner to dividends, but not voting rights).

CME controls PRO TV, the biggest media company in Romania, which operates the TV channels PRO TV (market leader), PRO 2, PRO X, PRO GOLD, PRO CINEMA, PRO TV International, and PRO TV Chisinau and a portfolio of news websites.

Under the terms of the agreement, holders of all of CME’s shares will receive USD 4.58 per share, approximately 32% above CME’s share price prior to the announcement that the company was commencing a process to explore and evaluate potential strategic alternatives (on March 25, 2019) -- a robust success, according to the company’s management.

“This transaction, which is the culmination of those efforts, is the right one for our shareholders and a satisfying conclusion to one of the most successful turnarounds of a leading media company in recent times,” said Michael Del Nin and Christoph Mainusch, CME Co-Chief Executive Officers.

CME is a media and entertainment company operating leading businesses in five Central and Eastern European markets with an aggregate population of approximately 45 million people.

CME's operations broadcast 30 television channels in Bulgaria, the Czech Republic, Romania, the Slovak Republic and Slovenia.

CME’s new owner, Petr Kellner (55), is the richest man in Czechia, with a fortune estimated at USD 15.5 bln. He also has close connections to Russia and China, according to international media, which raises concerns that this change in PRO TV’s ownership may impact the whole media landscape in Romania, according to G4Media.ro.

(Photo: Pixabay)