Russia’s CTC Media to complete reorganization via merger by June

MOSCOW, May 11 (PRIME) -- Media company CTC Media, Inc., incorporated in the U.S. and headquartered in Russia, will close a merger with its unit by the end of May to buy out shares from Modern Times Group (MTG), which owns 38% in the company, and minority shareholders with free float of 36%, CTC Media said in a statement late Tuesday.

“The company expects to receive a further refund from the U.S. Internal Revenue Service, which will form a part of the merger consideration, and intends to close the merger as soon as practicable following receipt of that refund. The company anticipates that the merger will close before the end of this month,” the statement read.

“As previously announced, the consideration in the cash-out merger transaction is expected to be U.S. $2.05 per share, which is in the upper half of the range approved by stockholders of $1.77 to $2.19 per share.”

CTC Media, Inc. closed a deal in late December 2015 on the sale of 75% in CTC Investments – uniting TV channels CTC, Domashniy and Che – to UTV Management, an affiliate of UTH Russia, a leading private commercial television broadcaster owned by Alisher Usmanov and Ivan Tavrin.

CTC Media received the first tranche of $150.5 million back then and the second one of $42.5 million in February.

The media holding will distribute the received money among the shareholders which are selling their shares in the company. The shares bought from MTG and minority holders will be paid off and CTC Media will leave the NASDAQ floor.

The reorganization was undertaken in order to comply with the Russian law that bans foreign companies from owning more than 20% in the country’s mass media.

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