European media group

"European Media Group" (EMG) – non-state Russian broadcasting holding. EMG is subsidiary company of the Russian diversified holding Siberian Business Union. HK "Siberian Business Union" includes industrial and manufacturing enterprises, printed media and radio stations, sports and improving facilities.

Assets

Radio stations (April, 2014) are among company assets:

• Europe Plus,
• Retro FM,
• Radio 7 on seven hills,
• FM cake (Moscow, St. Petersburg, Chelyabinsk)
• Radio Record (Moscow)
• Road radio
• Sport of FM
• Radio for friends
• Europe Plus TV

and also the sales house of Media Plus, sells advertizing on radio and on the Internet (Àvito.ru, Êinopoisk.ru, etc.)

Performance Indicators

The station of the EMG formats can listen more than in 2000 cities of Russia, Kazakhstan, Belarus, Kyrgyzstan, Latvia, Moldova and Ukraine. The weekly audience of stations of holding in Russia makes more than 33.6 million listeners. The holding provides 5000 jobs in Russia and the CIS.

History

EMG is created based on Europe Plus radio station.

In the mid-nineties the French Lagardere became the co-owner of EMG, and in 2004 purchased 100% of this company.

2020: Creation of Industrial Radio Player association

On October 26, 2020 the association knew of creation in Russia under the name "Industrial Radio Player" which will become the operator of a uniform online player of the broadcasters, largest in the country. Read more here.

2011: Lagardere is going to sell EMG

November 16, 2011 - The French Lagardere does not stop trying to get rid of the radio business. As RBC daily knew ^[1], the tender for sale of "European Media Group" (EMG) is announced. The participation in tender was confirmed so far only by Georges Polinski, the founder and the president of EMG. The asset was also offered the owner of Business FM — the metallurgist Vladimir Lisin. However it does not accept the price — for EMG ask at least 150 million dollars.

"The European media group" — the last asset of Lagardere in Russia. In June, 2011 she sold to the American Hearst Corp. and to Victor Shkulev the 51% in the AFS-IMG publishing group (the magazines Elle, Maxim, the teleguide of "Antenna-Telesem", etc.).

As top managers of large media holdings told, the interests of the seller are represented by Societe Generale bank. The asset is estimated approximately at 150 million dollars. "The bank announced the tender, participation in it will cost not less than 500 thousand dollars" — explained the source familiar with a situation.

According to interlocutors of RBC daily, the offer was received by five players. The participation in the tender was by only one of them confirmed so far — Zefir company behind which there is a founder and the president of EMG Georges Polinski. "An asset with the road therefore as the partner Mr. Polinski attracted VTB bank" — the top manager of large media holding added. Georges Polinski did not begin to comment on this information.

Suggested to participate in the tender also to the owner of Novolipetsk Metallurgical Combine Vladimir Lisin which is the owner of Joint Media holding (Business FM radio stations, "Radio Chocolate"). "The offer to us arrived, but [financial] conditions of the tender do not suit us therefore we do not participate in it" — commented on the source close to the company.

More than a year ago with the offer on purchase of EMG there was Ivan Tavrin's holding "Select radio". It manages 56 regional radio stations, the majority of which are repeaters of the stations entering into group. However now the company refused participation in the tender "because of mismatch of waiting of sellers of actual cost of this asset", told a source, close to it.

"The asset is strategic therefore the transaction will not remain unaddressed the states. It would be preferable that the buyer had the Russian roots" — one of interlocutors of RBC daily says.

Besides in June, 2011 became effective amendments in the law on media. Since November 10, 2011 foreign legal entities or the Russian legal entities in which foreign participation in a type of a share or a deposit in authorized capital exceeds 50% cannot be founders of the radio channels broadcasting all over the country. These restrictions officially do not affect business of EMG — all radio channels belonging to group are founded by the Russian legal entities. And only the "European media group" has foreign owners.

2012: Siberian Business Union buys EMG for $160 million

In 2012 Siberian Business Union purchased the European Media Group (EMG) more than for $160 million^[2].

2014: Purchase of Road radio

In April, 2014 it became known that "The European media group" closed the transaction on acquisition Road radio, permission on what she received from FAS at the beginning of April. EMG purchased 100% of authorized capital of Centre novykh tekhnology LLC company which manages Road radio.

Road radio is the most successful and original format on radio market of the last years. In short terms the station created outside Moscow was among leaders in classroom indicators, - the president of EMG Ekaterina Tikhomirova commented on the transaction. - Road radio very organically fits into a pool of our radio stations as has no format intersections with EMG stations. From the commercial point of view entry of Road radio into the structure of "The European media group" will allow radio station to participate in large deals and advertizing campaigns, respectively, we expect revenue growth significantly above the market".

Road radio - the second in size of daily audience network in the country: the radio station is listened by more than 10 million people, in a week – more than 23 million (data of TNS Russia, Radio Index). The radio station began the broadcasting in 2003 in the city of Kirishi of the Leningrad Region. Then the network began to develop actively – for April, 2014 it is present more than at 600 cities of Russia, including Moscow.

"The radio station on the format is not crossed with one product EMG therefore creates additional values for total audience of EMG, - the CEO of Centre nowykh technologi LLC Andrey Danilov considers. - Within large holding there is a possibility of consolidation of the resources necessary for further development of stations and gain of positions in the market. We hope that joint efforts on development of Road Radio radio station will result in desirable results and regarding growth of audience, and regarding increase in income"

===* 2016:

The Federal Antimonopoly Service (FAS) approved in the spring of 2016 purchase of 74.99% of "The European media group" by structure of Ural Mining and Metallurgical Company (UMMC). Siberian Business Union will remain the owner of 25.01% of EMG.

The petition on purchase of 74.99% of EMG was submitted Melodiya company which legal address matches the address of UMMC. At the same time, as data of SPARK-Interfax testify, 60% of stocks of the company belong to Igor Kudryashkin, 30% - to Andrey Kozitsyn, 10% - to Andrey Bokarev. The same persons are co-owners of UMMC.

In May, 2016 it became known that the co-owner of the Ural Mining and Metallurgical Company (UMMC) Andrey Bokarev and her top managers Andrey Kozitsyn and Igor Kudryashkin acquired 74.55% of shares of the European Media Group (EMG) radio holding, largest in Russia. In an interview to Kommersant the president of the company Ekaterina Tikhomirova^[3] reported about it^[4].

As the interlocutor of the edition close to buyers told, the controlling stake is owned now by Melodiya LLC from Sverdlovsk region which owners are the shareholder of UMMC Andrey Bokarev (10%), Andrey Kozitsyn (30%) and Igor Kudryashkin (60%). The transaction was already approved by Federal Antimonopoly Service, he specified.

As explained Tikhomirov, "SDS Media holding" which was the only owner of the company, saves a minority stake and will participate in business development together with new shareholders. Transaction amount of the party do not reveal^[5].

Notes