Central European Media Enterprises has signed a deal for the acquisition of Bulgaria's first national private television bTV, wholly owned by Rupert Murdoch's News Corp, it was officially announced on Thursday.

Under the terms of the agreement, CME will pay USD 400 M in cash for 100% of the terrestrial free-to-air TV channel, bTV. It will also take control of the two genre channels, bTV Comedy and bTV Cinema, along with News Corporation’s 74-per-cent interest in Radio Company C.J which operates five radio stations.

This sale completes News Corporation's programme of exiting its substantial Eastern European free-to-air broadcasting businesses, the company said.

The transaction is subject to regulatory approval by the Bulgarian Commission for the Protection of Competition and other customary closing conditions.

The move follows CME selling its Ukrainian channels Studio 1+1 and Kino to local businessman Igor Kolomoisky for USD 300 M in January. That deal is expected to close in the second half of April.

CME also said it was in the process of swapping Top Tone Holdings' 20% interest in one of CME's other Bulgarian broadcasting businesses, Pro.BG (fka TV2), in return for a 6% stake in the company that will form after the planned merger of Pro.BG and the BTV assets.

“We are now focused on building a highly profitable vertically integrated media company operating in the EU and EU accession countries," said Adrian Sarbu, president and CEO of CME. "The acquisition of BTV is the next step in repositioning CME."

“We would like to thank the management team and staff of the company for their commitment and high professional standards,“ said Gary Davey, the Chief Operating Officer of News Corp Stations Europe. "bTV was a News Corporation start-up which went on to become clear market leader for the past eight years. We wish the company well for the future under the ownership of CME.”

News Corporation was advised by JP Morgan, while CME was advised by Deutsche Bank AG, London Branch.

The sale is the third large deal on the Bulgarian TV market for the last two years after the US Central European Media Enterprises bought the cable TV2 and Ring for EUR 110 M, and the Swedish MTG Group acquired Nova TV for EUR 620 M.

Talks about the upcoming sale of the TV station first emerged in July 2008. Rupert Murdoch's News Corp NWSa.N first hired Lehman Brothers LEH.N to ascertain the value and strategic options for three Eastern European television stations - wholly owned properties in Latvia, Serbia and Bulgaria - after being approached by multiple suitors.

According to reports the properties were not doing poorly, but the company had decided to hire Lehman after the suitors' approaches.

At least seven big suitors, including the Colon-based German TV RTL, said they were considering buying the portfolio of Bulgaria's largest and most successful TV station a year ago. Initially the price was set at EUR 1,1 B, but eventually shrank. The offers, however, dried up with the onset of the global financial crisis.

bTV recently launched two theme channels - bTV Comedy, which succeeded the cable GTV, and bTV Cinema, which seeks to complement and enhance the programme proposals of the broadcaster.

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