CME to be acquired by an affiliate of PPF Group N.V.
AT&T, the largest shareholder in CME, has agreed to vote its shares in favor of the transaction
AT&T Inc.* (NYSE: T) has announced that it has agreed to the terms of a transaction in which Central European Media Enterprises Ltd. (CME) will be acquired by an affiliate of the Czech investment firm PPF Group N.V. (PPF). CME, which has broadcast operations in Bulgaria, the Czech Republic, Romania, Slovakia and Slovenia, announced in early 2019 that it was conducting a review of strategic options, including a potential sale of part or all of the company.
Under terms of the agreement, AT&T will receive approximately $1.1 billion in cash at close and will also be relieved of a $575 million debt guarantee. The sale is consistent with AT&T's plans to monetize non-strategic assets as it continues to pay down debt. Given the company's confidence in reaching a net debt-to-adjusted EBITDA ratio in the 2.5x range by the end of this year, shareholders should expect that share buybacks will be in the mix in the fourth quarter of 2019, along with continued de-levering.
AT&T acquired its stake in CME with the acquisition of Time Warner, now WarnerMedia, in 2018. PPF's acquisition of CME is expected to be completed during the second quarter of 2020, subject to the receipt of regulatory approvals and the satisfaction of customary closing conditions.
AT&T holds its third-quarter earnings call at 8:30 a.m. ET on Monday, October 28. Shareholders can listen to a live broadcast via the internet at AT&T Investor Relations.
*About AT&T
AT&T Inc. (NYSE:T) is a diversified, global leader in telecommunications, media and entertainment, and technology. It executes in the market under four operating units. WarnerMedia is a leading media and entertainment company that creates and distributes premium and popular content to global audiences through its consumer brands including: HBO, Warner Bros., TNT, TBS, truTV, CNN, DC Entertainment, New Line, Cartoon Network, Adult Swim, Turner Classic Movies and others. AT&T Communications provides more than 100 million U.S. consumers with entertainment and communications experiences across TV, mobile and broadband services. Plus, it serves nearly 3 million business customers with high-speed, highly secure connectivity and smart solutions. AT&T Latin America provides pay-TV services across 11 countries and territories in Latin America and the Caribbean, and is the fastest growing wireless provider in Mexico, serving consumers and businesses. Xandr provides marketers with innovative and relevant advertising solutions for consumers around premium video content and digital advertising through its AppNexus platform.
AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc. Additional information is available at about.att.com. 2019 AT&T Intellectual Property. All rights reserved. AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies. All other marks contained herein are the property of their respective owners.
Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.
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Contacts:
Erin McGrath
AT&T Inc.
Phone: (214) 862-0651
Email: erin.mcgrath@att.com
