United Group shareholders Solak and Boklag launch legal action to block sale of United Media

"The Shareholders' Agreement grants Solak and Boklag contractual rights of consent for any material change in the nature of United Group’s business. Despite this, BC Partners initiated the sale process of United Media, which encompasses the entire media segment of United Group, without their knowledge, approval, or consent," the statement notes.

United Media operates approximately 120 media operations and constitutes a core component of United Group's integrated telecommunications and media model, contributing to customer acquisition and retention, as well as strengthening the regional brand.

"Its sale would fundamentally transform United Group from an integrated media and telecommunications leader into a predominantly telecommunications company, thereby destroying the distinct value of the combined service offering across Southeast Europe. Some of the key media brands within the United Media portfolio include the national television channels Nova TV Bulgaria and Nova TV Croatia, the Adria News Network (ANN), as well as numerous other popular media platforms," the statement continues.

"The first sale relates to Adria News Network (ANN) and its assets in Serbia, Slovenia, Bosnia and Herzegovina, Croatia, and Montenegro, as well as Nova BH and Nova Montenegro. Crucially, it includes N1, Nova, Radar, and Danas, some of the last remaining editorially independent media outlets in Serbia. Solak and Boklag are not only concerned about the manner in which this sale is being carried out. They are also deeply concerned by what is publicly known regarding the proposed buyer's track record concerning cooperation with and acceptance of investments from certain states, as well as its connections to the authorities in Serbia and the potential consequences for media freedom in the region," the announcement states.

The statement also notes that under the Solak and Boklag’s leadership, the editorial independence of United Media's company outlets was guaranteed.

"It is precisely because of that independence that a large number of viewers, readers, and journalists placed their trust in the important work these media outlets do. Last week, public comments and concerns emerged regarding potential changes to the editorial approach of N1 Serbia. A segment of the audience and media experts have already pointed to changes in the tone and content of the television reporting. Media freedoms in Serbia and across the region are too important to be treated as a disposable item in the exit process of a private equity fund."

The legal protection sought by Solak and Boklag includes "a determination that the sale of United Media constitutes a material change to the nature of United Group's business, as well as an injunction prohibiting such a sale from being executed without their consent. The judge will rule on whether this sale process respects the Shareholders' Agreement, the rights of minority shareholders, and the obligations owed to them."

Solak: Deeply concerned, will take all necessary steps

The founder of United Group, Dragan Solak, stated:

"I was deeply concerned when I read allegations that BC Partners intends to sell the last remaining editorially independent media in Serbia to the company Alpac Capital. The sale of United Media would destroy the integrated telecommunications and media model built over years and hand over some of the last remaining independent media in Serbia to a buyer with a concerning track record regarding media freedoms. I was not notified about the sale of United Media, nor about the agreement with Alpac. BC Partners did not seek, nor did it receive, my consent at any point. I will take all necessary steps, including legal proceedings, to ensure that my rights under the Shareholders' Agreement are fully respected and enforced."

The assets covered by the first transaction include Adria News S.à r.l. (ANN) and its subsidiaries, which consolidate United Group's award-winning journalistic operations in Serbia, Slovenia, Bosnia and Herzegovina, Croatia, and Montenegro, alongside the national television stations Nova BH and Nova Montenegro.

This statement by the two former top executives of UG follows a series of press reports regarding the finalization of the sale of media gathered under ANN, including the portal N1BIH.

In a statement by ANN (Adria News Network), released after the initial information about the sale appeared, it was noted that they do not comment on market speculation or potential transactions.

"We are aware of external speculation and media reports regarding potential investor interest in ANN. As a matter of company policy, ANN does not comment on market speculation, discussions with shareholders, or potential transactions unless and until an official announcement is made," the text states.

"ANN does not comment on market speculation or potential transactions among shareholders. Our newsroom operations and editorial processes continue as normal," the statement concluded.

United Group stated the same upon an inquiry from N1.

According to reporting by "Raskrikavanje", the draft contract between United Group and the Luxembourg-based fund "European Future Media Investments", backed by the Portuguese investment group Alpac Capital, has already been realized.