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DOCUMENTS / KOMMERSANT Daily, APRIL 25, 2005 |
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// German RTL Group willing to pay ˆ100 million Media market On Friday, Germany’s Handelsblatt announced that RTL Group intended to purchase 49.99 percent of Ren TV, for about ˆ100 million ($131 million) by May 2005. Participants of Russian media market think such price reasonable and state a growing interest of Western media investors toward Russian television market. Media Holding Ren TV was founded on the basis of the namesake TV company, whose production had been purchased by Russian TV since 1991. Ren TV is received by as many as 725 localities on Russia’s territory. TV market experts prognosticate that in 2005 the turnover of the channel will be more than $100 million. According to RTL, Ren TV occupies 7.5 percent of the Russian TV advertising market. As much as 70 percent of the channel is owned by the subsidiary of RAO UES Center of Assets Optimization, and 30 percent are owned by Irena Lesnevskaya and her son Dmitry, who ocupy the posts of president and general director in Ren TV. RTL Group, being part of Bertelsmann, manages 31 TV companies in 10 countries of Europe and Asia. They include German RTL Television, French M6, and British Five. According to 2004 fiscal year its profits were ˆ4.878 billion. Market capitalization as of December 31, 2004 was € 8.5 billion. Kommersant has written that RAO UES had intentions to cell its part in Ren TV; the transaction is supposed to take place in May of this year. PricewaterhouseCoopers has already estimated 70 percent of the channel’s shares, and concluded that it may be worth $40-60 million. Both members of the evaluation committee, consisting of RAO members of the board, and participants of the Russian media market thought this figure was understated. The latter evaluated it by $200-300 million. Handelsblatt has information that RTL Group plans to purchase 49.99 percent of Ren TV for $131 million – a more adequate price – which will make the cost of the whole channel amount to about $260 million. If anyone is interested in purchasing the control stock, then considering the premium, its cost will amount to $300 million, Prof-Media general director Rafael Akopov says. “I think this price is objective.” Handelsblatt’s anonymous source at RTL said that the main issue remaining unsettled between negotiators is the development of the business plan and structure of the future management of Ren TV: “The main problem is how the channel will be managed, and what goals it will meet.” The newspaper does not specify whether or not RTL Group will be purchasing Ren TV shares from RAU UES directly or from the Lesnevskys, who have the priority right of purchasing RAO shares, being its minor shareholders. Yesterday, RTL official representatives were not able to comment on Handelsblatt article to Kommersant. “Negotiations on RAO UES selling its shares in Ren TV have been going on for three years, but the final decision of who will get how much of the channel, still hasn’t been made,” Lesnevskaya said. Kommersant has written that the main claimant of Ren TV control stock is Evrofinans Bank, which is controlled by state structures. However, representatives of Evrofinans are not confirming their interest for the channel. The Bank’s vice president Andrey Galiev refused to discuss the situation with Kommersant, saying he was not able to comment on rumors. Market participants think that is natural that large western media holding express such interest toward the Russian TV company. TNT general director Roman Petrenko thinks that the interest expressed by western media investors in the Russian TV channels is linked to Russia’s general attractiveness for investors. “Russian TV market, is one of the most dynamic markets in the world,” he said. “The last four years it has been growing by more than 30 percent a year, and it makes it very attractive for investments.” by
Yulia Kulikova All the Article in Russian as of Apr. 25, 2005  |
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