In a period of just under two years PPF Group succeeded in a major restructuring of TV NOVA, which resulted in a highly successful exit whereby TV NOVA was sold to the leading CEE broadcaster, CME, in 2004.
The TV NOVA transaction represented a highly successful outcome for PPF following the Group’s private equity investment in the TV station. TV NOVA, a commercial TV station catering to the Czech market, was acquired, restructured and exited from within a period of two years. The deal brought Jiri Smejc on to PPF Group’s board and he became a shareholder of PPF Group in 2005.
- TV NOVA was the first privately-held Czech television station, which began nationwide broadcasting in 1994.
- It is currently the largest commercial TV station in the Czech Republic and is one of the most successful and profitable commercial television stations in CEE.
- TV NOVA reaches 98% of the Czech population of approximately 10 million people and has successfully leveraged digital opportunities to expand across new channels.
- PPF Group acquired TV NOVA in 2002 and started restructuring it with a view to identifying an appropriate strategic partner within two to four years.
- Through its financial resources and commercial and managerial experience, PPF Group successfully stabilised TV NOVA's business and substantially increased viewing ratings by:
- reinforcing the company’s financial position;
- resolving outstanding legal issues;
- restructuring the procurement of programming and & advertising;
- consolidating the ownership structure; and
- increased ratings
- In 2004, after the successful transformation of TV NOVA, a 100% stake in the company was sold to CME. Through this transaction, PPF shareholders acquired 3.5 million shares in CME stock and became the second largest shareholder in CME with an 11% economic interest at exit time, which gave PPF Group access to the lucrative media markets of CEE.
Acquisition date - June 2002
Exit date - May 2005
Valuation at exit - CZK 20,205 million: settled via payment in cash of CZK 16,469 million and via 3.5 million shares in CME (representing an 11% stake at exit time)