Eesti Meedia management board is in negotiations with parent company, Norway’s Schibsted, to buy out the PLC.
Board seeks buy-out of Eesti Meedia from Schibsted
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Eesti Meedia board consists of chairman Mart Kadastik, and members Toomas Issak and Meelis Luht. According to Mart Kadastik, negotiations have been in process for a couple of months already, final results are not to be expected before a few weeks time. The mood, however, is optimistic.
The negotiations were triggered by the Norwegian media group’s desire to prioritize advertising media, giving up or restructuring other areas.
«A couple of years ago, already, Schibsted reviewed its strategic priorities, laying the main emphasis on advertising business. Accordingly, they have adjusted their investments and only invested in advertisement business these past years,» explained Mr Kadastik.
Eesti Meedia, however, is a journalism-based company, said Mr Kadastik, leading Schibsted to seek options to exit the Baltic countries or to restructure the business located here. Thus, Eesti Meedia had two outlooks for the future: either to concentrate on advertising business or find a way to develop the company, in its entirety, according to the vision of the local leadership.
«They are accepting our viewpoints and feel deeply responsible, socially, for what will happen,» described Mr Kadastik.
Mr Kadastik underlines this is no rescue mission for the company. «Schibsted would have continued, but parts of the company would probably have been restructured,» said Mr Kadastik.
According to Mr Kadastik, there are no others around the table except Eesti Meedia and Schibsted – the latter considering no others to sell the company to.
Eesti Meedia board plans to continue as a journalistic media company, leading the Baltic market.
According to Mr Kadastik, money is being sought from various sources. «Board members can’t just pull such money out of their pockets. So we have to ask among the institutions where money is distributed,» said Mr Kadastik, confirming that both banks and stock exchange are being considered.
Last year, the Schibsted-owned Eesti Meedia’s profits fell by more than a half, to €1.32m. In 2011, the group’s profits amounted to €3.65m. The group’s main source of profit was income from holdings in its subsidiaries and related companies, totalling €3.18m. Eesti Meedia’s balance sheet total, as at change of the year, was €56.2m, retained profits amounting to €11.3m.
PLC (AS) Eesti Meedia owns AS Postimees, AS SL Õhtuleht (50 per cent), AS Ajakirjade Kirjastus (50 per cent), AS Ühinenud Ajalehed (66 per cent), AS Kanal 2, AS Trio LSL, AS Kroonpress, AS Express Post (50 per cent), OÜ Meediasüsteemid, OÜ Soov Kirjastus, and OÜ Scanpix Baltics (49 per cent). Eesti Meedia is also involved in Latvia and Lithuania.