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Central Europe
April 20, 2018 www.intellinews.com I Page 14
Czech media oligarchs embark on acquisition spree
Jaroslav Hroch in Prague
Czech Media Investment (CMI) group, controlled by billionaire Daniel Kretinsky, will pay CZK1.8bn (€73mn) for Lagardere group radio stations op- erating in Czechia, Slovakia, Poland and Romania with a combined consolidated revenue of €56mn .
Lagardere's Czech operations have a market share of around 20% and include popular radios Evropa 2, Frekvence 1 and Bonton. The group also has a 50% share in Radiohouse, the top player on the Czech radio ad market.
The deal, subject to approval by competi-
tion watchdogs in all concerned countries, rep- resents the first sell-off of Lagarde Active assets within its strategic aims, as announced by owner Arnaud Lagardere on March 8.
Numerous Czech media owned by foreign inves- tors have in recent years returned to local hands, including those of Slovak-born billionaire Andrej Babis, the caretaker prime minister and the con- troversial financier Zdenek Bakala, a former coal baron.
But CMI is also looking farther afield; in Romania, it will buy Europa FM and Virgin Radio; in Poland, it will acquire Radio Zet, the country's second- most popular station, with a 12% market share
in Q1, 2108, as well as smaller but other signifi- cant brands Radio Zet Chilli, Meloradio, Antyradio and Radio Plus Polska; and in Slovakia, it will buy Europa 2, fourth-strongest radio on the market with a 15% share.
CMI is co-owned by energy investor Kretinsky, a billionaire alumnus of Slovak financial group J&T,
Among the assets being taken over is Poland's Radio Zet.
other high-profile investors Patrik Tkac and Ro- man Korbacka.
In June 2016, CMI added other titles to its al- ready robust Czech portfolio, including busi- ness daily E15 and offshoot E15 Weekly; as well as F.O.O.D., Betynka, Dieta and Moje psychologie.
In 2013, Kretinsky and Tkac bought the Czech assets of German-Swiss publisher Ringier Axel Springer, whose stable included leading tab- loids Blesk and Aha!, sports daily Sport, and magazines Reflex, ABC, and Svet Motoru. Subse- quently, their rebranded Czech News Center ac- counted for around 30% of newspaper readership.
The company also owns two printing companies and is a leader in books publishing and press dis- tribution. CMI was also revealed to be negotiating with Lagardere Group to acquire premier titles in France, including the world-famous lifestyle maga- zine Elle.
“The deal concerns, besides Elle, the magazines Version Femina, Art & Décoration, Télé 7 Jours, France Dimanche, Ici Paris and Public,” board member Daniel Castvaj said. “However, the news division, including Europe 1, Paris Match and Le Journal du Dimanche, and the Elle brand with its international licenses are not part of the planned transaction.”
Moreover, CMI is negotiating a purchase of a 91% stake in French weekly Marianne, a board mem- ber confirmed on April 18. The Czech group is already in talks with Marianne majority owner and CEO Yves de Chaisemartin.