MOSCOW -- Russia's largest commercial TV and media outfit, Media-Most, has sold a 4.5% stake in NTV channel and its network THT to the SmallCap World Fund, part of the American Funds Group.
The move follows months in which the debt-laden Media-Most has been fighting various legal battles over repayment of loans, including one for $40 million which state bank Vneshekonombank called in last year.
Further dilution of Media-Most stock has been in the cards since December, when the holding company confirmed that it was selling a 14% stake to local natural resources giant Gazprom, which already held a 30% stake in NTV.
But the deal with the U.S. mutual fund represents the first time that the holding has sought international equity funding to continue its operations, which run from free TV to satellite subscription services, as well as film production, distribution and exhibition.
VP Igor Malashenko confirmed late November that the group would aim to raise further capital through an international stock listing in 2001.
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