This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Central European Media Enterprises Ltd. Agrees To Acquire Bontonfilm A.s., A Leading Content Rights Distribution Company In The Czech Republic And Slovak Republic

HAMILTON, Bermuda, March 28, 2011 (GLOBE NEWSWIRE) -- Central European Media Enterprises Ltd. ("CME") (Nasdaq:CETV) (Prague Stock Exchange:CETV) today announced that its wholly-owned subsidiary CME Media Pro B.V. has entered into a purchase agreement with an affiliate of Bancroft Private Equity, LLP ("Bancroft"), to acquire 100% of the shares of Bontonfilm a.s. ("Bontonfilm") from Bancroft and minority shareholders. Bontonfilm is a film, home entertainment, digital and television rights distribution company with operations in the Czech Republic and Slovak Republic and a leading market position in each country. The acquisition of Bontonfilm is consistent with CME's strategy to strengthen its position as one of the largest vertically integrated media companies in Central and Eastern Europe producing and distributing audiovisual content for cinema, home entertainment, television and new media.

In 2010 Bontonfilm generated revenues (unaudited) of approximately US$37 million and OIBDA of approximately US$2.6 million as adjusted for non-recurring items. The purchase price is on a debt-free basis and consists of initial cash consideration of US$11 million to be paid at closing, subject to a minimum cash balance of CZK36 million (approximately US$2 million) remaining in Bontonfilm. Additional cash consideration currently estimated at a maximum of US$1.5 million may be payable to the sellers in December 2011, depending on the OIBDA achieved by Bontonfilm for 2010, the amount of cash and working capital in the business at closing and the satisfaction of certain other indemnification obligations. Closing of the transaction, which is subject to the approval of the Antimonopoly Office of the Czech Republic and other customary closing conditions, is expected to occur by the end of the second quarter of this year.

Adrian Sarbu, CME's President and Chief Executive Officer, commented: "Bontonfilm is an OIBDA positive and cash generative business that will have an immediate accretive impact on CME's bottom line. This acquisition greatly complements our Czech and Slovak broadcasting operations. It will enable us to maximize the value of our own library in both markets and increase third party revenues and OIBDA of Media Pro Entertainment." 

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,974.10 +261.44 1.48%
S&P 500 2,081.86 +20.84 1.01%
NASDAQ 4,930.0830 +38.8640 0.79%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs