Media company Modern Times Group has expressed its surprise after Bulgaria’s Commission for Protection of Competition rejected its deal to sell commercial broadcaster Nova to PPF Group, the investment company controlled by Czech billionaire Petr Kellner.
In February, MTG moved to complete the disposal of its international entertainment operations by agreeing to sell its 95 per cent stake in Nova under a deal that granted the business an enterprise value of €185m ($217.2m).
However, the CPC has ruled that the significant number of media outlets owned by the two groups would give them a competitive advantage in the media market, potentially incentivising them to raise prices, change the terms of existing contracts or restrict access to the market.
In a statement, MTG said: “MTG is surprised by the decision and will review it further before deciding on the next steps to be taken.”
Nova is Bulgaria’s largest commercial media group and comprises seven television channels and 19 online businesses. It is a broadcaster of sport in the country.
MTG first entered Bulgaria in 2007 when investing in Balkan Media Group Limited, which operated the Diema TV channels, and then later acquired Nova in 2008.
PPF’s interests include Czech telco O2, which operates pay-television broadcaster O2 TV, a major broadcaster of sport in the country. PPF said it would also acquire the remaining five per cent stake in Nova from Eastern European Media Holdings.
In March, Norwegian telco Telenor agreed to sell its Central and Eastern European (CEE) assets to PPF for €2.8bn. The deal included Telenor’s mobile operations in Bulgaria, Hungary, Montenegro and Serbia.