May 29 (SeeNews) - Bulgaria's competition regulator said that it has opened an in-depth probe into a deal for the sale of 100% of Bulgaria's Nova Broadcasting Group by Sweden-based entertainment company Modern Times Group (MTG) and Luxembourg-registered Eastern European Media Holdings to Czech-based investment group PPF.
MTG has a 95% stake in Nova Broadcasting Group, while Eastern European Media Holdings holds the remaining 5%.
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Both Nova Broadcasting Group and MTG are active on Bulgaria's e-commerce market, and considering Nova Broadcasting Group's leading position in media services, the Commission for Protection of Competition has decided to launch an in-depth probe of the deal, the regulator said in a statement late on Monday.
Nova Broadcasting Group is active on the e-commerce market through its units Convenience and Trendo BG, while MTG operates in the country through its Hungarian subsidiary Online Comparison Shopping.
In February, when the deal was announced, MTG said the transaction values 100% of Nova Broadcasting Group at 185 million euro ($214.0 million).
PPF intends to acquire Nova Broadcasting Group through its Dutch-registered unit PPF TMT Bidco 2.
MTG entered Bulgaria in 2007 via the acquisition of Balkan Media Group Limited, which operated the Diema TV channels. In 2008, MTG bought Nova.
In Bulgaria, Nova Broadcasting Group's main rival is BTV Media Group, owned by Bermuda-registered Central European Media Enterprises.
PPF Group invests into multiple market segments such as banking and financial services, telecommunications, real estate and biotechnology. PPF Group's assets amounted to 35 billion euro as at June 30, 2017.
In March, Norwegian telecommunications group Telenor said it has agreed to sell its Central and Eastern European (CEE) assets to PPF for 2.8 billion euro on an enterprise value basis. The transaction includes Telenor's wholly-owned mobile operations in Hungary, Bulgaria, Montenegro and Serbia.
($ = 0.8643 euro)