CME management negotiates an increase in its stake in 'Studio 1+1' in Ukraine, ideally to 99%, as 100% is not allowed under the Ukrainian law, from 60% at present. However, any conclusion to the talks is not expected soon. CME has also confirmed that it is looking for acquisition targets in Russia. The company could not deny nor confirm that it is planning to buy MUZ-TV in Russia for over USD200m.
Our view: We view the move towards increasing CME exposure to the fast growing Ukrainian and Russian markets as positive. We value an additional 39% stake in Studio 1+1 in Ukraine at USD 285m, proportionally to existing stake, as any control premium seems not applicable. We reiterate our Buy rating for the stock.