OREANDA-NEWS. June 03, 2010. The Federal Anti-Monopoly has approved an application made by three companies affiliated with Bank Rossiya, by which each will purchase 15% of Video International (VI), the largest advertising sales house in Russia, reported the press-centre of OTKRITIE Financial Corporation.    

View: The television ad sales market is currently undergoing re-shuffling following an amendment restricting Video International and its competitors to 35% market share, effective YE10. Although we expect that CTC Media will most likely establish its own sales house, we view an ownership change at Video International as a mild positive for CTC, since it could pave the way for an orderly reorganization of the market. Regardless of the future lineup of sales houses, however, we expect robust growth in the television advertising market. 

Valuation: CTC Media currently trades on a 2010 EV/EBITDA of 10.7x. 

Action: We reiterate our BUY rating and target price of USD26 for CTC.