Business

Econet Media acquires MTG’s TV businesses in Ghana & Nigeria

Econet Media Group has acquired MTG’s free-TV broadcasting and production businesses in Ghana and Nigeria for an undisclosed amount. Econet recently acquired WBSTV and is set to start operations soon.

The previously announced sale of MTG’s free-TV broadcasting business in Tanzania to the same buyer is pending local regulatory approval and is expected to close in Q1 2017. The firm says the previously announced sale of TV businesses in Ghana and Nigeria closed while the sale of Tanzanian business  is expected to close in Q1 2017

MTG says its ongoing strategic transformation from a traditional broadcaster into a digital video entertainment company so the sale is justified.

The African free-TV and production businesses generated sales of SEK 21 million and an EBIT result of SEK -27 million for the first 11 months of 2016, of which Ghana and Nigeria contributed with sales of SEK 18 million and EBIT of SEK -11 million.

The sale of MTG’s businesses in Ghana and Nigeria will result in a preliminary net capital loss of some SEK -24 million, which will be reported within items affecting comparability (IAC) in MTG’s Q4 2016 financial results. The sale of the Tanzanian operations is expected to result in an insignificant net capital effect.

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