Following the resolution passed at an Extraordinary General Meeting of shareholders held on 21 October 2010, a prospectus regarding the demerger, distribution and listing of MTG's wholly owned subsidiary CDON Group AB was published on 10 December 2010 and CDON Group’s shares commenced trading on the Mid Cap market of Nasdaq OMX Stockholm under the ‘CDON’ symbol on 15 December 2010. The record date for the dividend of all of the shares in CDON Group to MTG shareholders was 17 December 2010. MTG shareholders received one share in CDON Group for each MTG class A and/or class B share that they held on 14 December. MTG class C shares are not entitled to dividends.
The Group subscribed for 100% of the five year SEK 250 million convertible bond issued by CDON Group in December 2010. The bond is unsubordinated, bears interest of 2.85% per annum, and is due to be repaid on 2 December 2015 if not redeemed or converted prior to maturity. The bond may be converted into 6,578,947 CDON Group shares between 15 June 2012 and 1 December 2015. The conversion rate has been set at SEK 38, and represents 125 per cent of the volume-weighted average trading price of the CDON Group share between 15 December 2010 and 14 January 2011 (the first 20 days of trading in CDON Group’s shares).
The Group announced on 22 February 2010 that it had signed an agreement to acquire a further 35% interest in Viastrong Holding AB from Strong Media Group Ltd for a consideration in cash. MTG’s previously held 50% of Viastrong, which operates the Viasat Ukraine DTH satellite pay-TV platform through Vision TV LCC. The acquisition was completed on 9 June. Following the closing of the transaction, MTG owns 85% of Viastrong with an option to acquire the remaining 15%, and has therefore fully consolidated the operating results of Viasat Ukraine in the Pay-TV Emerging Markets business segment since 1 June 2010.
The Group announced on 8 February 2010 that it had acquired 50% of Raduga Holdings S.A. from Continental Media S.A. for a consideration in cash. Raduga is the sole owner of LCC DaoGeoCom, which operates Russian nationwide DTH satellite pay-TV platform Raduga TV. Raduga TV offers a package of more than 50 TV channels, including a wide range of Russian channels and the localised versions of leading international channel brands including Viasat’s own entertainment channels. The Group’s interest in Raduga is a joint venture and consolidated proportionately by MTG and is reported within the Group’s Pay-TV Emerging Markets business segment from February 2010.