National Media Group (NMG) together with its shareholders agreed to acquire National Telecommunications (NTK), a leading Russian provider of cable TV and broadband Internet access services, valuing NTK at some $1.5 billion, reported news agency Interfax. NMG will acquire a controlling stake in NTK while the remaining stake will be acquired by NMG’s shareholders Severstal, Surgutneftegaz, and Bank ROSSIYA.
NTK reported revenues of $216 million in 2007, up 74% from 2006. Its EBITDA doubled to $120 million in 2007. The company that recently changed its name from National Cable Networks (NKS) had 5.1 million households passed in the end of 2007, including 1.8 million in St. Petersburg and 0.6 million in Moscow. It had 111 thousand broadband Internet service subscribers. NTK‘s shareholders are investment group Nafta with 98% stake and Delta Private Equity (2%).
National Media Group, which was set up in February 2008, owns majority of leading Russian TV channels: 68% of REN TV and 72% of TRK Petersburg -5th Channel. NMG‘s shareholders include Bank ROSSIYA with 54.96% stake, steel group Severstal (19.49%), oil & gas producer Surgutneftegaz (19.49%), and insurance group SOGAZ (6.06%).