The Merger of Media-1 and AF Media Holding TV Assets Has Been Completed
15 July 2010
The parties completed the execution of the documents and announced the completion of the transaction between Media-1 Group and AF Media Holding which was signed on 19 August 2009 and approved by Government Commission on Foreign Investment Monitoring on 3 February 2010.
As a result of the transaction a new TV holding company named UTV has been established on a parity basis. It includes TV assets of Media-1 Group and AF Media Holding – 33 regional TV broadcasting stations being part of Media-1 TV, 75% of shares of Muz-TV channel and 100% of shares of 7TV channel held by AF Media Holding. Each party acquired 50% share in the joint venture. Media-1 has maintained operational control of the company since the signing of the transaction.
UTV Management company has been established to manage UTV assets, with Ivan Tavrin named as CEO.
UTV Management Board of Directors includes three representatives of each shareholder: Andrei Galiev, Dmitri Kudryavtsev and Sergey Gorin representing AF Media Holding; Dmitri Krukov, Ivan Tavrin and Dmitri Sergeev representing Media-1.
Andrei Galiev, representing AF Media Holding, was elected to serve as the Chairman of the Board of Directors of the management company.
“The consolidation of our assets has already brought positive results and we can see significant growth of Muz-TV and 7TV. It became possible due to both the expansion of the network coverage through inclusion of Media-1 broadcasting stations and hard work of our team. Our near-term plans include the launch of a new content set on Muz-TV channel and full reformatting of 7TV” - Ivan Tavrin said, commenting on the transaction.
“A significant increase of the financial and audience metrcis of the both channels was a predictable result of the transaction. We believe that this positive dynamics will be sustained and the development of the channels will continue going forward” – said Andrey Galiev.
The main shareholder of Media-1 Group is Ivan Tavrin. The significant shareholder of the company is the private equity fund advised by Elbrus Capital.
AF Media Holding is owned by Mr. Alisher Usmanov.
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