SBS Broadcasting Announces Shareholder Reorganization at TV2 in Hungary
August 15 2005 - 4:16PM
PR Newswire (US)
LUXEMBOURG, Aug. 15 /PRNewswire-FirstCall/ -- SBS Broadcasting SA
(Nasdaq: SBTV; Euronext Amsterdam N.V.: SBS) announced today that a
Hungarian company (to be named "VT2 Kft."), owned by the chief
executive officer of TV2 in Hungary, Gabor Kereszty, and TV2 board
member Dr. Gabor Benke, has acquired shares representing a 16%
economic and 27.1% voting interest in TV2 (the "TV2 Shares") from
MTM Kommunikacios Rt., the Company's original partner in TV2, in a
private transaction. The Company also announced that it has entered
into an agreement with VT2 Kft. under which it has paid $5.0
million for the right to acquire or assign the TV2 Shares in the
future. Under a May 2002 agreement with its original partner in
TV2, the Company was obliged to purchase or assign the TV2 Shares
following TV2's renewal of its broadcast license, which occurred in
late July 2005. The May 2002 agreement was terminated in connection
with these transactions. The Company currently owns a 49% voting
interest and 81.5% economic interest in TV2. Hungarian Media laws
prohibit anyone from holding more than 49% of the voting rights in
TV2 and require that a Hungarian person or legal entity own at
least 26% of the voting rights in TV2. As such, the Company is
prohibited from acquiring the TV2 Shares, but may assign the TV2
Shares to another Hungarian partner in the future under the
agreement with VT2 Kft. SBS is a European commercial television and
radio broadcasting company with operations in Western and Central
Europe. Countries where SBS currently has broadcasting assets
include: Belgium (Flanders), Denmark, Finland, Greece, Hungary, The
Netherlands, Norway, Romania and Sweden. For further information
visit: http://www.sbsbroadcasting.com/. DATASOURCE: SBS
Broadcasting SA CONTACT: Michael Smargiassi or Jon Lesko
(investors), both of Brainerd Communicators, +1-212-986-6667; Jeff
Pryor (press), of Pryor Associates, +1-818-338-3555; or Catriona
Cockburn (press), of Citigate Dewe Rogerson, +44-207-282-2924 Web
site: http://www.sbsbroadcasting.com/
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