SOFIA (Reuters) - Swedish entertainment company MTG is to sell Bulgaria's leading commercial media company Nova Broadcasting to Bulgarian Advance Media Group in a 185 million euro ($209.48 million) deal, the companies said on Friday.
The proposed transaction follows Czech investment group PPF's decision last month to drop plans to buy Nova Broadcasting Group after it was blocked by the Bulgaria's anti-monopoly watchdog.
MTG expects to close the sale of its 95 percent stake in Nova Broadcasting Group in the second quarter, pending regulatory approval. MTG said it would use the proceeds to develop its global digital entertainment business.
Advance Media Group, owned by two brothers, Kiril Domuschiev and Georgi Domuschiev, said it was committed to developing Nova Broadcasting Group, which has seven TV channels and nine online businesses.
"The investment in Nova Broadcasting Group is strategic for our investment holding," Advance Properties' chief executive Georgi Domuschiev said in a statement.
The Domuschiev brothers' businesses include former state-owned maritime shipping company Navibulgar, pharmaceutical company Huvepharma as well as the soccer club Ludogorets Razgrad.
Kiril Domuschiev is also chairman of Bulgaria's largest employer association.
Last July, Bulgaria's regulator had blocked the sale to PPF because outlets owned by Nova and PPF would give them a competitive advantage on the media services market. This might have led to price increases, change of existing contract terms or restricted access to the market.
($1 = 0.8832 euros)
(Reporting by Angel Krasimirov. Editing by Jane Merriman)
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