Nova TV's Price Tag Enough To Buy 9 of the “Smaller” Companies in SOFIX
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The Swedish Modern Times Group MTG AB announced yesterday that it signed an agreement for the acquisition of 100% of the Bulgarian Nova Television from Antena Bulgaria at a price tag of 620 mln euros.
Nova TV's financial results point to a 54% hike in revenues to 42 mln euros last year. The TV also almost doubled EBIT to 19.1 mln euros.
As a result of the correction that has been continuing for ten months on BSE, public companies, even the blue chips, have seen their market capitalizations fall significantly.
The chart below shows the market capitalization figures for the companies in SOFIX as at July 31.
You can see that the sum of 1.2 billion leva (the price the Swedish company paid for Nova TV) buys 9 of the smaller-cap companies.
Those are Lead and Zinc Complex, Kaolin , Neochim, Sparky Eltos, Elana Agricultural Land Opportunity REIT, M+S Hydraulic, Orgachim, Toplivo and Euroins.
The revenues of the 9 companies above top 1 billion leva and their combined net profit stands at a little over 70 mln leva, 35.7 mln euros (excluding Elana REIT).
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