Central European Media Enterprises Ltd (CME) is to acquire two Romanian radio stations for US$20.9m (RON 47.2m). CME is buying the two assets – news and entertainment channels Pro FM and Info Pro, from Compania de Radio Pro s.r.l.
NASDAQ and Prague-listed CME operates six television networks in
Private equity group Apax Partners invested US$190m to acquire a 49.7% interest in CEME in 2006.
Pro FM delivered revenues of EUR 3.3m (US$5.2m) in 2007 with an EBITDA margin of 42%, while the Info Pro channel is still in a start-up stage and delivered revenues in 2007 of EUR 0.6m (US$0.9m) and an EBITDA loss of EUR 1m (US$1.6m).
CME said that the close collaboration of the Radio Pro channels with MTV Romania creates an opportunity for CME to enhance its exposure to the youth demographic and capitalise on potential cross-promotional synergies and economies of scale.