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)

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