US-based media group Time Warner (TW) raised its minority stake in Bermuda-based Central European Media Enterprises (CME) to nearly 31 percent; previously TW held close to 25 percent. Time Warner acquired 3.1 million shares at $19.45 each, according to an SEC filing. The figure was confirmed to Czech Position by the CME’s communications department.
Analysts were upbeat about the news, which caused CME share prices to rise sharply on NASDAQ and the Prague Stock Exchange.
“The share increase by Time Warner is definitely positive news; TW is showing high confidence in the future development of CME,” Česká spořitelna analyst Václav Kminek said in a market note. Testora Limited is part of the PPF group.
“The stake was bought from Testora Limited, which is under [entrepreneur Petr] Kellner. TW now holds 22.12 million shares of CME (Class A+B) with about a 47 percent share of voting rights,” Kminek said. Testora Limited is part of the PPF group. The total price of the transaction was $60.3 million.
On the Czech market, CME operates commercial broadcaster TV Nova, Nova cinema, Nova Sport and MTV Czech. It also operates broadcast, cable and satellite TV stations as well as some radio stations in Bulgaria, Croatia, Romania, Slovakia and Slovenia.
Last week, CME released its Q4 results, which showed better than expected operating results but an unexpected net loss of $26 million.
