Schibsted ASA has entered into an agreement to acquire all the shares from the other foreign owners in the TV channel Kanal 2 in Estonia for approx. NOK 26 million. Through this acquisition Schibsted increases its ownership in Kanal 2 from approx. 27% to approx. 80% of the companys equity.
Kanal 2 is the largest privately owned TV channel in Estonia and reaches 85% of the countrys population of 1.2 million. The channel was established in 1993. Schibsted has been a shareholder in Kanal 2 since 1995. The selling shareholders in the channel are American and Swiss.
As required by Estonian law, Schibsteds majority ownership position does not amount to majority control. Schibsted owns approx. 49.5% of the voting shares in the company. The remaining shares are owned by the channels Estonian founder and CEO, which owns approx. 20% of the equity.
Kanal 2s revenues in the first half of 1997 were approx. NOK 6.9 million compared to approx. NOK 3.9 million in the first half of 1996. The channel had a net loss of approx. NOK 0.8 million in the first half of 1997 compared to a net loss of approx. NOK 1.7 million in the first half of 1996. The main competitors are the state-owned channel ETV and TV3 which has Modern Times Group as its main owner.
Contact person:
Executive Vice President Jan Erik Knarbakk – phone +47 22 86 41 00
Oslo, October 3, 1997