More money flowing into Ukraine television

Michael Hedges March 16, 2008

TRK Ukraina received a $65.5 million loan from SCM Limited, the investment vehicle owned by billionaire Rinat Akhmetov. Proceeds, according to the TRK Ukraina statement, will be used for loan repayments and continuing operations. Akhmetov is the principal owner of TRK Ukraina, which operates television and radio channels.

In December Ukraine’s media regulator National TV and Radio Broadcasting Council awarded TRK Ukraina a license for a satellite channel devoted to sports: TRK Sport.

Speaking to the Ukrainian Investment Summit in London March 10, SCM Development Director Ilya Arkhipov said the company would launch TRK sport and all news channel TRK Novosti sometime this year. He also said the new channels would boost TRK Ukraina’s aggregate market share to 8% by 2010.

TRK Ukraina is based in eastern Ukraine, headquartered in Donetsk, and primarily serves Russian-speaking audiences.

Akhmetov’s wealth is ranked number one in Ukraine by the magazine Focus at US$ 14.6 billion, up from US$ 12 billion in 2007. His primary business in mining although SCM has its hands in a bit of everything and is Ukraine’s largest holding company.

Number three on the Focus list of Ukraine’s billionaires is Igor Kolomoisky with US$ 4.7 billion. Mr. Kolomoisky invested in Central European Media Enterprises (CME) last year to the tune of US$ 110 million and joined the company’s board. CME’s CEO Mike Garin has moved swiftly over the last year to buy out minority shareholders in television company Studio 1+1.

CME floated a convertible bond offering in February for US$ 475 million, which closed last week (Monday March 10). Most of the proceeds will be used to buy out the remaining Studio 1+1 shareholders.

Number two on the Focus list of Ukraine’s billionaires is Viktor Pinchuk who controls most of the remaining privately held television stations.