Modern Times Group AB, Sweden’s largest private broadcaster, plans to spin off its Internet retail unit into a separate company as it focuses on expanding its television networks.
The Stockholm-based company intends to distribute shares in the unit, called CDON Group, to shareholders during the next six to nine months, it said in a statement. Some other companies have also approached MTG about buying the unit, and their approaches will be considered, it said.
CDON Group sells CDs, DVDs, books, toys and clothes through national Web sites in the Nordic region. The business accounted for 16 percent of MTG’s sales last year. Its net income excluding goodwill impairment charges doubled to 120 million kronor on net sales of 2.3 million kronor in 2009.
Handelsbanken Capital Markets is advising MTG on the demerger.