CTC Media, Inc. (CTCM), a Russian independent media company, announced Monday said it has received a formal, non-binding offer from UTH Russia, a privately held Russian commercial television broadcasting group, for the purchase of a 75 percent interest in CTC's operating businesses, on a cash- and debt-free basis, for $200 million in cash.
The Board of Directors and the company's Special Committee have each reviewed the offer and believe that it is appropriate to seek to negotiate the final terms and definitive documentation in respect of the proposed transaction. The Special Committee appointed to evaluate the offer consists of Chairman Werner Klatten, Tamjid Basunia and Jean-Pierre Morel.
The company was announcing developments in connection with its response to the amendment to the Russian law "On Mass Media", which will impose further restrictions on non-Russian ownership of Russian television companies beginning January 1, 2016.
The company noted that the Special Committee has agreed to grant a period of exclusivity to UTH, during which the parties will seek to agree the definitive terms of the transaction.
Following a transaction, the direct and indirect ownership of CTC's operating businesses in Russia would comply with the Russian law requirement that at least 80 percent of the ultimate beneficial ownership and control of the businesses is held by Russians by the stated deadline of January 1, 2016.
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