Apace Media’s east European joint venture is merging with Bulgarian TV channel owner Nova Televizia.
Apace and Modern Times Group each own 50% of Balkan Media Group, which is merging with Nova Televizia. Apace will end up with 5% of the enlarged group.
BMG owns five TV channels in Bulgaria and Macedonia. Apace’s share of BMG’s earnings in the June 2008 was £385,000. The stake is valued at £5.04m.
Nova Televizia owns Nova, the second most watched TV channel in Bulgaria, and 80% of Bulgarian women’s magazine EVA.
Pro forma revenues for the enlarged group would have been €60m in 2008, while operating profit would have been €13.7m.
The deal requires regulatory consent.
Surplus cash in the BMG joint venture will be distributed to the partners. That cash could be between €1m and €1.7m. At 1.75p a share, Apace is currently valued at £1.68m. At the end of June 2008, net debt was £908,000.
Apace Media is currently raising £1m gross via a share placing at 2p a share.
© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.