Dear Colleagues,
We are writing today with some important news about our company.
CME just announced that it has agreed to sell its operations in Croatia and Slovenia to the United Group,
which is majority owned by the US investment firm KKR and backed by the European Bank for Reconstruction
and Development. This transaction underscores the value of broadcasting businesses in the region, and
the United Group clearly recognizes the hard work and dedication of our teams in those countries, which
is reflected in the value of the productions and brands that will be acquired and the opportunities these
provide to continue developing the country’s media landscape and remain trendsetters in the region.
While we remain very optimistic about the future of these market-leading businesses, this transaction offers
us a number of important benefits. First and foremost, it greatly accelerates our plans for debt reduction,
providing us with the funds to repay our nearest debt maturity. As a result, once the transaction closes,
our average borrowing cost will fall to 4.5% (from 7.25% today) and we’ll save more than $30 million in
annual interest payments.
We are firm believers in the importance of television and will continue to focus on growing our remaining
businesses in the coming years. This transaction ensures we will have the resources necessary to invest
in those businesses so as to maximize value and face the challenges of the future.
The transaction is subject to a number of conditions, including regulatory approval in a number of countries.
As a result, closing is expected at the end of the year.
As always, if you have any feedback for us, or additional questions that we can answer, please
do not hesitate to get in touch.
Regards,
Michael and Christoph