SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2015

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

11. SUBSEQUENT EVENTS

        On July 6, 2015, the Company announced the receipt of a formal, non-binding offer from UTH Russia, a privately held Russian commercial television broadcasting group, for the purchase of a 75% interest in the group's Russian and Kazakhstan business operations. Pursuant to the non-binding offer, UTH would acquire a 75% interest in CTC Media's operating businesses, on a cash- and debt-free basis, for $200 million in cash.

        Although the Board of Directors has not approved a sale or divestment transaction at this time, the Board and its Special Committee have each reviewed the UTH offer and believe that it is appropriate to seek to reach agreement on the final terms and definitive documentation in respect of the proposed transaction. The discussions with UTH are at a relatively early stage and there can be no assurance that the Special Committee will be successful in agreeing on definitive documentation with UTH, or that such transaction will ultimately close. Such transaction would be subject to customary closing conditions, including clearance from the Russian Federal Anti-monopoly Service. If ultimately recommended by the Special Committee and approved by the Board of Directors, the transaction would be submitted to the Company's stockholders for approval.

        In light of current circumstances, the Board has decided not to declare a dividend to be paid in the third quarter of 2015. The Board believes that the interests of stockholders are best served by preserving the financial and strategic flexibility of the Company in the current market, operational and corporate circumstances.