Russia’s CTC Media board still studying company’s sale

MOSCOW, Mar 5 (PRIME) -- The board of directors of Russian media holding CTC Media can sell the whole business or its part, as well as a sale of the company’s shares to comply with a law restricting foreign ownership in mass media to 20%, CTC Media said Thursday in a press release.

“The board continues to consider a variety of potential alternatives, including corporate restructuring, franchising and licensing structures, capital reorganization and divestments. These alternatives include, among others, a potential sale transaction. To date, no affirmative decision on these alternatives has been made,” the statement read.

“If the board were to pursue a sale of the business, there can be no assurance that it would be successful in negotiating a transaction on acceptable terms or at all. As a result, the value of the common stock of our company could further decline, and you may lose all or a significant portion of your investment.”

Mass media reported on Wednesday quoting sources that Sweden’s Modern Times Group (MTG) is ready to sell its 39% stake in CTC Media.

MTG is the largest shareholder of CTC Media, whose other large shareholder with 25% is Cypriot offshore Telcrest of Yury Kovalchuk and his partners, while 36% are in free float.

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