OREANDA-NEWS. November 05, 2014. CTC Media, Inc. (CTC Media, or the Company) (NASDAQ: CTCM), a leading Russian independent media company, has appointed two international firms and a Russian firm to provide legal and tax consulting services as the Company’s advisers.

The international law firm Morgan, Lewis & Bockius LLP and the Russian law firm Egorov Puginsky Afanasiev & Partners have been engaged as legal advisers. The American consultancy firm Habif, Arogeti & Wynne has been engaged as tax advisers.

These firms will advise the Company regarding potential responses to the recent amendments to the Russian law “On Mass Media,” which will impose further restrictions on foreign ownership of media businesses in Russia. These advisers will assist the Board of Directors and management in considering potential alternatives, including corporate restructuring, franchising and licensing structures, capital reorganization or divestment.

The amendments reduce the permitted level of aggregate foreign ownership of Russian mass media from 50% direct ownership to 20% direct or indirect ownership or control. The legislation applies to both existing and future foreign ownership, and will come into force on January 1, 2016. The amended law will affect CTC Media itself, as a Delaware corporation that directly or indirectly owns 100% of the shares of a series of Russian legal entities that operate primarily broadcast media entertainment businesses in Russia and the CIS, and then the non-Russian stockholders of the US holding company. Russian beneficial owners holding through off-shore holding structures will have until January 1, 2017 to comply with the law.

Previously the Board of Directors of CTC Media has established an advisory committee comprising non-executive directors. The committee is analyzing possible actions to ensure compliance with the new law while protecting the interests of the Company’s stockholders. CTC Media is also consulting with other media companies to which these amendments apply.

Yuliana Slashcheva, CEO of CTC Media: “As we had reported earlier, new legislative requirements may have an impact on the ownership structure or operations of our American parent company, whose shares are traded on NASDAQ, and its shareholders outside Russia. To fully analyze all our existing opportunities, we have engaged leading legal and financial advisers. These are companies with an extensive expertise in their spheres, which will help us to take the most effective action in the existing circumstances in order to protect the interests of our shareholders. The advisory committee of our Board of Directors is considering the appointment of financial advisers. We may engage other external advisers as necessary to protect the interests of our shareholders”.