“STS Media” has finished the transaction on sale of 75% of “CTC investments” owned by Usmanov’s UTH

MOSCOW, December 24. “STS Media” has finished the transaction on sale of 75% of the company holding UTH businessman Alisher Usmanov. This is stated in the message of the company.

“CTC Media” announces completion of sale of 75% stake of its subsidiary “CTC investments” leading private Russian commercial broadcaster “UTV Management” (UTH), – it is told in the message.

The company on September 25, 2015 announced the conclusion of a final agreement with UTH. The amount of the transaction amounted to $200 million, the final price will be determined before February 1, 2016, the company notes. Shareholders approved the deal at an extraordinary meeting on 17 December 2015.

On the agreements reached in September, “CTC Media” has pledged to approve the issuance of additional shares “CTC investments”, resulting in “UTV Management” becomes the owner of 80% of this company. This allows “CTC Media” to ensure full compliance with new requirements of the law “On mass media” limiting foreign ownership of Russian television companies (foreign ownership cannot exceed 20% – approx. ed).

“CTC Media” – the largest Russian media company that fell under this restriction. The holding company controls essential channels CTC, “Home”, “Pepper” and CTC Love. Swedish “MTG” owns 38% of shares holding 36 percent of shares are traded on NASDAQ, the remaining blocking stake – the Cyprus Telcrest, owned by the co-owner of Bank “Russia” Yuri Kovalchuk with partners.

Foreign companies with Russian beneficiaries shall be entitled to own more than 20% of the media until 2017. Kovalchuk himself to redeem the share of foreigners in the “CTC Media”, because in 2014, the businessman and companies controlled by him have come under U.S. sanctions and the European Union.

“UTH” was created in 2009 through the merger of TV assets of Usmanov and Ivan Tavrina. The parties received equal shares of the project: “AF media holding” Alisher Usmanov has invested in shares of their channels 7TV and “Muz-TV” and Media One Tavrina – regional terrestrial TV stations, which was then 33. Now the main assets of the holding channels “Yu”, Disney and “MUZ-TV” and online video service ClipYou.