Sweden’s Modern Times Group to Buy Latvia’s LNT Commercial TV Channel

Swedish media holding Modern Times Group (MTG) has clinched a deal to acquire 100 percent of shares in Latvijas Neatkarīgā Televīzija (LNT) commercial television, the company said in a statement on January 9, the Baltic News Service reported.

According to the Rīga-based newswire, MTG did not disclose the value of the deal, which has yet to be approved by the Latvian Competition Council.

LNT, the second largest commercial TV in Latvia, broadcasts channels like LNT, TV5, and LMK entertainment channel, BNS reported. MTG said in its statement, cited by BNS, that LNT reported slightly less than seven million euros in revenue and a negative EBITDA for 2012. LNT, which was established in Rīga in 1996, broadcasts both locally produced and imported entertainment content, as well as news and films.

According to BNS, MTG already owns three TV channels in Latvia: TV3, 3+, and TV6.

TV3 Latvia PR coordinator Marta Zandersone did not reveal to BNS whether LNT and TV3 would be merged or left as two rival TV channels. Zandersone explained to BNS that MTG would wait for the competition watchdog’s decision on the planned takeover before it decides on further steps.

Upon completion of the transaction, BNS reported, MTG will assume full operational control of the business and consolidate LNT’s results in its accounts. The results will be reported within the Viasat Broadcasting business area as part of the Group’s Baltic activities in the Free-TV Emerging Markets operating segment.

Hans-Holger Albrecht, President and CEO of MTG, was quoted as saying, “MTG is a growth company and we consistently seek opportunities to build our existing market positions and establish new ones. LNT is such an opportunity and would be an excellent fit with our existing operations in Latvia and across the region. LNT’s channel portfolio complements our own offering, which we have developed over the past 14 years, and this transaction would enable us to provide viewers with an even greater variety and quality of Latvian and Russian language programming. With one of our two play-out facilities now located in Rīga, we are committed to continuing to invest in Latvia and the Baltic region as the advertising markets stabilize and return to growth.”

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