Igor Kolomoisky Invests US$ 110 Million To Acquire An Interest In CME

HAMILTON, Bermuda -- Central European Media Enterprises Ltd. ("CME") announced today that Igor Kolomoisky, a prominent Ukrainian businessman, has acquired 1,275,227 shares of CME's Class A Common Stock for cash consideration of US$ 110 million.

Igor Kolomoisky

The price per share has been determined on the basis of a weighted average trading price.

This share purchase represents approximately 3.0% of CME's total outstanding Common Stock.

In connection with this investment, Igor Kolomoisky has been invited to join the Board of Directors of CME.

Ronald S. Lauder, Non-Executive Chairman of CME, commented on the transaction: "I've known Igor Kolomoisky for some time and admire him as an extremely knowledgeable businessman with in-depth knowledge of Ukraine. Igor understands the importance of independent television not only in Ukraine, but throughout Eastern Europe. I'm delighted to welcome him as our newest Director, and I am confident he will help CME enormously."

Michael Garin, CME's Chief Executive Officer, said: "Investors should welcome this step as a major vote of confidence. The Apax investment last year underscored their view of the growth potential of CME as a company. Similarly, this investment by Mr. Kolomoisky should confirm CME's view that Ukraine will be a powerful growth engine for the Company in the future. As I said a few weeks ago when we released our second quarter earnings, 'We are convinced that in the next few years Ukraine will become the largest market in which we operate. We remain completely committed to Ukraine and will continue to aggressively but prudently pursue opportunities to further strengthen our presence there.' Today's announcement is a major indicator of that commitment."

Igor Kolomoisky said: "CME is one of the fastest growing and best managed media companies in the world and represents an exceptional investment opportunity for me. I am impressed with the company's management team, vision and disciplined financial approach. I look forward to working with my new Board colleagues and the CME management team to build upon the CME success story at a time when prospects are so bright both in Ukraine and in the other markets in which the company operates. Ronald Lauder has been a pioneer in helping the countries of Central and Eastern Europe to establish the independent media outlets so critical to the development of their economies and political systems. I've known Ronald for a number of years, and I'm delighted to now join him on the Board of CME."

CME is a TV broadcasting company operating leading networks in six Central and Eastern European countries with an aggregate population of approximately 90 million people.

The Company's television stations are located in Croatia (Nova TV), Czech Republic (TV Nova, Galaxie Sport), Romania (PRO TV, PRO TV International, Acasa, PRO Cinema and Sport.ro), Slovakia (Markiza, Galaxie Sport), Slovenia (POP TV, Kanal A) and Ukraine (Studio 1+1, Studio 1+1 International, Kino, Citi). CME is traded on the NASDAQ and the Prague Stock Exchange under the ticker symbol "CETV".

Source: CNN Money

Comments