CTC Media to Sell 75% Interest in Operating Businesses to UTH Russia for $200M

CTC Media, Inc.

today announced that it has entered into a definitive agreement to sell a 75% interest in its operating businesses to UTV-Management LLC, an affiliate of UTH Russia ("UTH"), a leading private commercial television broadcaster in Russia, for $200 million in cash, subject to adjustment as described below. The transaction is being undertaken to ensure compliance with the foreign ownership restrictions imposed by Russia's new Mass Media Law, while maximizing the potential return to the Company's stockholders. The Company had previously announced its receipt of a formal, non-binding offer from UTH on July 6, 2015. The Board of Directors of CTC Media will recommend that the Company's stockholders approve the transaction at a special meeting to be convened as soon as possible. The transaction is expected to close in late December 2015. MTG Russia, the Company's largest stockholder, holding approximately 38% of the Company's common stock, has indicated that it is prepared to support the transaction based on the terms of the agreement with UTH and the ability of the Company to return value to