Baker Capital and Nordic Capital Agree to Sell C More Group to European Media Company SBS Broadcasting

Baker Capital and Nordic Capital Agree to Sell C More Group to European Media Company SBS Broadcasting

NEW YORK, February 9/PRNewswire/ -- Baker Capital, a private equity firm investing in digital
communications businesses, and Stockholm-based Nordic Capital, announced
today that they have signed a definitive agreement to sell C More Group to
SBS Broadcasting S.A. (Nasdaq: SBTV; Euronext Amsterdam N.V.: SBS) through
its wholly owned subsidiary Kanal 5 Holding AB for Euro 269.6 million in
cash. Funds managed by Baker Capital and Nordic Capital each own
approximately 50% of C More Group which was formed when the firms acquired
Canal+ Television AB from Vivendi Universal in October 2003.


C More Group is the leading premium pay-TV provider in the Nordic region
and operates the Canal+ channels in Sweden, Norway, Finland and Denmark. The
company has over 770,000 subscribers and had revenues of Euro 181 million in
2004. The channels are distributed by satellite, cable, broadband and the
digital terrestrial network.


In the 14 months that Baker Capital and Nordic Capital have owned the
company, the company grew subscribers by nearly 100,000, reformatted and
relaunched the channels, upgraded program scheduling to a prime-time format,
increased the number of channels from three to five, renewed major sports
rights including Premier League and Serie A, renegotiated movie rights
contracts, added new forms of distribution including broadband and mobile,
and introduced wagering on sports matches.


"We are very pleased with the way the C More Group has developed over the
term of our ownership of the business and believe that management, under the
leadership of Marc-Antoine d'Halluin, has done an excellent job of creating a
valuable strategic asset," said Robert Manning, Partner of Baker Capital. "We
are delighted with the terms of the sale of the company and are pleased to be
delivering a strong return to our investors."


Anders Hultin, Partner of Nordic Capital, said, "The combination of C
More with SBS Broadcasting will create a significant force in the commercial
TV space in the Nordic region. We are very pleased to see that SBS values the
transformation that we have achieved. The two companies have a very strong
strategic fit where both companies have leading market positions in their
respective market segments. For C More Group this is an excellent opportunity
in a rapidly transforming industry. The combination will strengthen C More's
already strong market position and leverage its core capabilities."


The transaction is subject to competition authority approval and is
expected to close in the second quarter of 2005.


The sellers were advised in the transaction by Morgan Stanley (financial)
and Vinge (legal).



About C More Group


C More Group is the leading premium pay television provider in the Nordic
region, serving Sweden, Norway, Finland and Denmark. The Company has
long-term exclusive rights agreements with most of the major Hollywood movie
studios and several local distributors and holds the live broadcast rights to
the most popular sports leagues including Premiere League (English football),
Serie A (Italian football), Allsvenskan (Swedish football), Tippeligan
(Norwegian football), NHL, and Elitserien (Swedish ice hockey). The Company
provides premium television programming to subscribers through distributors
for a monthly fee as well as pay-per-view services.



About SBS Broadcasting


SBS Broadcasting is a European commercial television and radio
broadcasting company with operations in Western and Central Europe. Countries
where SBS currently has broadcasting assets include: Belgium (Flanders),
Denmark, Finland, Greece, Hungary, The Netherlands, Norway, Romania and
Sweden.



About Baker Capital


Baker Capital, founded in 1995, is New York based private equity firm
with US$1.5 billion under management. Baker Capital makes investments in
communications-focused companies at all stages of development. The partners
of Baker Capital have extensive private equity and operational experience
allowing the firm to provide its portfolio companies with not only capital,
but also global strategic thinking and relationships.



About Nordic Capital


Nordic Capital is a leading private equity firm with a first rate proven
team and a long track record of making successful investments in the Nordic
mid-market. Since its inception in 1989, expansion capital has been provided
to more than 50 companies. Nordic Capital has an extensive network of
contacts and a deep understanding of different industries in the Nordic
market. The firm's proven investment strategy creates value by actively
implementing a broad corporate agenda. Nordic Capital's funds have attracted
leading Nordic and international institutional investors.



Source: Baker Capital

Anders Hultin, Partner, of Nordic Capital, +46-8-440-50-50, or Robert Manning, Partner, of Baker Capital, +1-212-848-2000, or Marc-Antoine d'Halluin, CEO of C More Group AB, +46-8-459-28-95


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