Dragan Solak and Victoriya Boklag file lawsuit against sale of United Group’s media in London

Dragan Solak and Victoriya Boklag, through Gerrard Enterprises LLC and Cable Management Company Ltd, have filed a lawsuit against three entities controlled by BC Partners. The goal of this lawsuit is to stop the sale of United Group’s media business, which is being carried out in violation of the Shareholders’ Agreement.

The Shareholders’ Agreement, according to the statement, gives Solak and Boklag contractual consent rights for any material change in the nature of United Group’s business. Despite this, BC Partners initiated the process of selling United Media, which includes the entire media segment of United Group, without their knowledge, approval or consent.

United Media, as reminded, manages about 120 media operations and is a key part of United Group’s integrated telecommunications and media model, contributing to attracting and retaining users, 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, destroying the unique value of the unified service offering across Southeast Europe. Some of the key media brands within United Media’s portfolio include the national broadcasters Nova TV Bulgaria and Nova TV Croatia, Adria News Network (ANN), as well as numerous other popular media platforms.

The first sale concerns 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, the statement says.

Solak and Boklag, it is added, are not only concerned about the way the sale is being carried out. They are also concerned about what is publicly known to be the proposed buyer’s past practice in terms of cooperation and acceptance of investments by certain countries, as well as its ties to the Serbian authorities and the possible consequences for media freedom in the region.

Under the leadership of Solak and Boklag, as indicated, the editorial independence of the media belonging to the United Media was guaranteed.

– It is precisely because of this independence that a large number of viewers, readers and journalists expressed confidence in the important work that these media do. Last week, comments and concerns emerged in the public regarding possible changes in the editorial approach of N1 Serbia. Some viewers and media experts have already pointed out changes in the tone and content of television reporting. Media freedoms in Serbia and throughout the region are too important to be treated as an expendable item in the process of a private investment fund’s exit from ownership – the statement emphasized.

The legal protection that Solak and Boklag are seeking includes a determination that the sale of United Media represents a material change in the nature of the United Group’s business, as well as a prohibition on such a sale being carried out without their consent. The judge will decide whether this sale process respects the Shareholders’ Agreement, the rights of minority shareholders and the obligations that exist towards them.

Dragan Solak, the founder of United Group, said he was deeply concerned when he read the allegations that BC Partners intends to sell the last remaining editorially independent media in Serbia to Alpac Capital.

– The sale of United Media would destroy the integrated telecommunications-media model that has been built for years and hand over some of the last remaining independent media in Serbia to a buyer with a worrying record on media freedoms. I was not informed of the sale of United Media or the agreement with Alpac. BC Partners did not seek or receive my consent at any time. I will take all necessary steps, including legal action, to ensure that my rights under the Shareholders’ Agreement are fully respected and enforced – he said.

UNITED MEDIA PRODUCTION D.O.O. BEOGRAD

United Grupa BROADBAND INVESTMENT S.à r.l.

United Media

United Group

Gerrard Enterprises LLC

Cable Management Company Ltd

BC Partners

Alpac Capital

Dragan Šolak

Victoriya Boklag