CTC Media announces cash consideration


CTC Media, Inc., of which MTG owns 38%, announced on April 29 that it will pay
out USD 2.05 per share to its shareholders that are not subject to US sanctions.
MTG holds 60,008,800 CTC Media shares and will therefore receive USD 123.0
million in cash, and thereafter retain no interest in the company or its
operations. CTC Media anticipates that the transaction will close by the middle
of May and the full announcement may be found at www.ctcmedia.ru/press
-center/releases/.
Based on the currency exchange rates at close of business on Friday 29 April,
net cash receipts of SEK 987 million would be reported in the Group’s quarterly
results cash flow statement. The transaction would give rise to a total negative
non-cash impact of SEK 1.1 billion in the ‘net income from discontinued
operations’ line of the Group’s quarterly results income statement. This is
mainly due to the anticipated accumulated currency translation differences of
approximately SEK 1.0 billion, which have previously been booked to Group equity
and, to a lesser extent, the adjustment to the fair value of the holding when
compared to the balance sheet at the end of Q1 2016.

The cash proceeds will be used to reduce MTG’s borrowing levels, and fund the
ongoing development of the Group’s digital video entertainment businesses.

“This marks the final step in our withdrawal from those entities impacted by the
change in the Russian laws regarding foreign ownership of mass media. CTC Media
had already taken the necessary steps to comply with the law and is now
distributing the proceeds of that process. We have invested a total of USD 123
million in Russia since 2001.The proceeds from the sale of our Russian and
related assets, together with dividends received, is now expected to have
amounted to USD 768 million.”

Jørgen Madsen Lindemann, President & Chief Executive Officer

MTG (Modern Times Group MTG AB (publ.)) is a leading international entertainment
group. Our shares are listed on Nasdaq OMX Stockholm (‘MTGA’ and ‘MTGB’). The
information in this announcement is that which MTG is required to disclose
according to the Securities Market Act and/or the Financial Instruments Trading
Act, and was released at 08:00 CET on 2 May 2016.
Any questions?
www.mtg.com
Facebook (https://www.facebook.com/pages/Modern-Times
-Group/184644878213403?fref=ts): facebook.com/MTGAB
 (https://www.facebook.com/MTGAB?fref=ts)Twitter (https://twitter.com/MTGAB):
@mtgab
 (https://twitter.com/intent/follow?original_referer=http://mtg.com/&screen_name
= 
MTGAB&tw_p=followbutton&variant=2.0)press@mtg.com (or Jessica Sjöberg 46 76 494
09 13)
investors@mtg.com (or Stefan Lycke 46 73 699 27 14)

Attachments

05019560.pdf