STOCKHOLM/SOFIA, July 31 (Reuters) - Swedish media company Modern Times Group (MTGb.ST: Quote, Profile, Research) said on Thursday it had signed a deal to buy Nova TV Bulgaria for 620 million euros ($966 million) in cash, expanding its reach in eastern Europe.

MTG said in a statement the acquisition of Nova, Bulgaria's second biggest television channel, would be financed by the Swedish company's existing liquid funds as well as 3 billion crowns ($494 million) of new debt.

The deal is subject to approval from relevant authorities. MTG said it expected the deal to be completed within three months.

"The acquisition is our largest to date ... It demonstrates our commitment to expand our operations into high growth emerging markets," Hans-Holger Albrecht, president and CEO of MTG, said in a statement.

Nova, 100 percent controlled by Greek broadcaster Antenna Group, has about 32.4 percent share of the country's 125 million euros television advertising market, MTG said in a statement.

The Swedish broadcaster also controls cable television channels Diema in Bulgaria, as well as channels in the Baltic countries, Russia, Hungary, the Czech Republic and Slovenia.

The advertising market in the European Union newcomer grew by 30 percent last year and is expected to expand by about 20 percent over the next five years, industry officials say.

On Tuesday, Central European Media Enterprises (CME) said it has bought an 80 percent stake in two Bulgarian television stations -- national channel TV2 and sport cable channel Ring TV -- for $172 million. (Reporting by Stockholm and Sofia newsrooms; Editing by Paul Bolding)

http://uk.reuters.com/article/mediaNews/idUKL140096420080731

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Nova TV, which is the second most watched television station in the country, has generated over 30 percent of the advertising market share in 2007. For the first half of the year the channel attracted an 18 percent share of viewing, reads the statement.

http://www.balkaninsight.com/en/main/news/12181/

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