Metromedia International Group Board Authorizes Evaluation of Plan to Separate Its Existing Businesses
NEW YORK--(BUSINESS WIRE)--Nov. 8, 2000--
Plan to Separate MMG Businesses
Intended to Increase Stockholder Value
James R. Hatt, President and Chief Executive Officer
of Metromedia International Telecommunications
Subsidiary Resigns
Metromedia International Group, Inc. (AMEX: MMG) announced today that its Board of Directors had authorized management to evaluate structural alternatives to separate its Snapper, Metromedia China and eastern European radio and cable businesses from its Russian and eastern European telephoni assets.
MMG further announced that these alternatives may include sales of certain or all of these assets to third parties or the spin-off of certain or all of these assets as independent companies to MMG's stockholders, according to Stuart Subotnick, Vice Chairman, President and Chief Executive Officer of MMG.
"We believe that exploring alternatives to separate our Snapper, Metromedia China, radio and cable businesses from our core telephony business will allow our stockholders to realize the full potential value of these businesses," said Subotnick. "While we have not completed the final analysis of the values of any of these businesses on a stand-alone basis, we believe that this may be the best means to enhance overall stockholder value.
"We also believe that following completion of these transactions, investors will be more receptive to our "pure play" Russian and eastern European telephony business than they have been to our various business lines and that the planned transactions will be in the best interests of our stockholders," Subotnick continued.
"Our Board has not approved any definitive transaction and any final action would remain subject to a number of conditions in addition to final Board approval, including, for certain transactions, obtaining the consent of our banks and our bondholders," Subotnick continued. "We intend to complete our analysis as soon as possible and any resulting transactions should be finalized by June of next year. Finally, we do not currently believe that any spin-off of these businesses could be accomplished on a tax-free basis," Subotnick concluded.
MMG also announced that James R. Hatt, the President and Chief Executive Officer of its Metromedia International Telecommunications (MITI) subsidiary and a member of the MMG Board of Directors has resigned to pursue other interests. Carl Brazell, currently the Co-President and Co-Chief Executive Officer of MITI in charge of all of MMG's radio properties, will assume Mr. Hatt's responsibilities for MMG's telephony and cable properties on an interim basis.
"On behalf of the Board of Directors and stockholders of MMG, I would like to thank James for his service as the President of MITI" said Subotnick. "James was instrumental in this successful integration of the PLD telephony businesses into the MITI businesses and in obtaining significant cost reductions from those combined businesses. We wish James well in his future endeavors. We are confident that the senior operations personnel now in place in our various properties in eastern Europe and Russia will continue to operate successfully under Carl's leadership." Hatt will remain a consultant to MMG for a period of two years.
"I thank Stuart and the Board for their kind words and I wish them and the entire MMG family well," said James Hatt. "I have enjoyed my time at MITI and I wish the Company continued success in its endeavors around the world," concluded Hatt. |
