PRAGUE, July 3 (Reuters) - Ukrainian businessman Igor
Kolomoisky has agreed to provide a $100 million cash injection
into the Ukrainian operations of Central European Media
Enterprises (CME).
Kolomoisky also agreed to merge his and media group CME's TV channels in the ex-Soviet country, TET TV and Studio 1+1, CME said in a statement on Thursday.
In exchange, Kolomoisky, a CME shareholder and a member of its board, will get a 49 percent stake in its Ukrainian business.
Kolomoisky has also granted CME a put option to sell its 51 percent stake to him for $300 million. The put option can be excercised within a year of completion of the transaction.
CME, which operates in seven central and eastern European countries including the Czech Republic and Romania, has been hit by lower advertising spending in the economic downturn.
It reported a 37 percent drop in first-quarter revenue and warned ad spending would continue to decline this year.
Last month, Time Warner completed a $241.5 million investment in Bermuda-registered CME, giving the U.S. group a 31 percent stake.
(Reporting by Jana Mlcochova; Editing by Dan Lalor) For main central European company news, double click on E.Europe hot stocks Main E.Europe news Related stories on For real-time index quotes, double click in brackets: Warsaw WIG20 Budapest BUX Prague PX Keywords: CME/UKRAINE (prague.newsroom@thomsonreuters.com; Reuters Messaging: jana.mlcochova.reuters.com@reuters.net; +420-224 190 479) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Kolomoisky also agreed to merge his and media group CME's TV channels in the ex-Soviet country, TET TV and Studio 1+1, CME said in a statement on Thursday.
In exchange, Kolomoisky, a CME shareholder and a member of its board, will get a 49 percent stake in its Ukrainian business.
Kolomoisky has also granted CME a put option to sell its 51 percent stake to him for $300 million. The put option can be excercised within a year of completion of the transaction.
CME, which operates in seven central and eastern European countries including the Czech Republic and Romania, has been hit by lower advertising spending in the economic downturn.
It reported a 37 percent drop in first-quarter revenue and warned ad spending would continue to decline this year.
Last month, Time Warner completed a $241.5 million investment in Bermuda-registered CME, giving the U.S. group a 31 percent stake.
(Reporting by Jana Mlcochova; Editing by Dan Lalor) For main central European company news, double click on E.Europe hot stocks Main E.Europe news Related stories on For real-time index quotes, double click in brackets: Warsaw WIG20 Budapest BUX Prague PX Keywords: CME/UKRAINE (prague.newsroom@thomsonreuters.com; Reuters Messaging: jana.mlcochova.reuters.com@reuters.net; +420-224 190 479) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.