MTG buys Norwegian radio station

The Swedish international entertainment giant Modern Times Group (MTG) said on Tuesday it intends to make an offer to buy Norway’s P4 Radio Hele Norge.

MTG purchased over 9 million shares of P4 on Monday from an number of institutional and private shareholders for 30 Norwegian kroner per share. MTG now owns the equivalent of 68 percent of the P4 shares.

The offer was a 50 percent premium to Monday’s closing prices.

“P4 Radio has been a long term strategic holding for MTG for almost 10 years,” said Hans-Holger Albrecht, president and CEO of MTG. “The Company is cash generative with a strong management team.”

Albrecht said this would create the largest Scandinavian radio broadcaster. P4 Radio is estimated to have 55 percent of the total Norwegian radio advertising market with about 1.25 million listeners each day.

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Swedish broadcaster MTG quits Slovenia

Swedish broadcaster Modern Times Group, MTG, said Wednesday it will cancel its Slovenian television channel TV3 and quit the EU country citing the unfavourable media environment there.

“We’ve been forced to such a radical step by the situation in Slovenia’s media market determined by monopolies and a lack of competitiveness,” TV3’s head Gregor Memedovic said in a statement.

MTG entered Slovenia’s media market in 2006 and created TV3, which currently employs 39 people and has 11 percent of the country’s viewers.

“Despite that, TV3 could not win a proportional share (to the number of viewers) in the advertising market and has been registering large losses,” Memedovic said, adding there were no prospects of the situation improving over the next years.

In 2010, TV3 and state television RTV filed a complaint before the Competition Protection Authority against media house Pro Plus for allegedly forcing advertisers to sign exclusive contracts with its commercial television channels POP TV and Kanal A.

The competition authority opened an investigation in 2011 but has yet to make a ruling.

According to Pro Plus figures, POP TV and Kanal A together have a 60-70 percent market share in Slovenia.