By Lisa Kerner
Charlotte, N.C., Feb. 22 - Moscow CableCom Corp. entered into a definitive merger agreement to be acquired by its largest shareholder, Renova Media Enterprises Ltd., for $12.00 per share, or about $152 million, according to a company news release.
The merger agreement includes a $4.5 million termination fee and the transaction is expected to close during the second quarter of 2007.
Concurrently with the agreement, a Renova Media subsidiary, Moscow CableCom and ZAO ComCor-TV entered into a bridge facility agreement for unsecured subordinated debt financing for up to $45 million while the merger is pending.
Renova beneficially owns 22,884,017 shares, or 80.1%, of Moscow CableCom's outstanding stock, according to a schedule 13D filing with the Securities and Exchange Commission.
Moscow CableCom, located in New York, is the parent company of a Russian provider of pay-TV and internet services.
Renova Media Enterprises is the telecommunications arm of Renova Group, a Russian private equity investor.
| Acquirer: | Renova Media Enterprises Ltd.
|
| Target: | Moscow CableCom Corp.
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| Transaction value: | $152 million
|
| Payment per share: | $12.00
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| Termination fee: | $4.5 million
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| Announcement date: | Feb. 22
|
| Expected closing: | Second quarter of 2007
|
| Stock price for target: | Nasdaq: MOCC; $11.39 on Feb. 21
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