The VETEK group of companies and the United Media Holding (UMH) Group signed on Friday an agreement on the sale of a 98% stake in the media holding.

"VETEK will acquire shares of most of the minority shareholders in individual projects, including structures affiliated with Hennadiy Boholiubov. An option with Petro Poroshenko to acquire his stake in Korrespondent and other mutual projects was exercised in April 2013," the UMH Group said in a statement.

It is planned that the deal will be closed in the first quarter of 2014. Until the final closure of the deal, the management of the UMH Group will stay unchanged. A 98% stake in the company has been passed to the escrow agent (a reputable law firm in the United Kingdom).

As reported, UMH Group had announced that it needed to attract investment. Due to the unfavorable market environment on the global stock markets, the board of the UMH group abandoned their plans to go for an IPO. Having consulted with the investment company Concorde Capital, they decided to attract private investment.

Ihor Mazepa, the CEO of Concorde Capital, told Interfax-Ukraine in May 2013: "The traditional way for shareholders to attract investment from the public market doesn't work anymore. We have recommended that the UMH group to change their strategy of attracting funds and work with a private equity fund or private investors."

Shareholders of the UMH group, having examined several offers, chose Serhiy Kurchenko's group, because it will not only fully meet the interests of stockholders and creditors, but also will allow the attraction of extra funds for the more intense development of the group.

"Thanks to the deal the company will get extra financing. This may give a new impulse to the development of the company's brands and the strengthening of its market positions. The crucial factor is that we have received reliable assurance from VETEK, that they will preserve the independence of the editorial staff and won't intervene in the editorial policy of the media," First Vice-President of the UMH Group said.

"The ambitious VETEK group can give a serious impetus to the development of UMH group, especially in the field of new media, including the purchase of current businesses. As a result, the UMH group may enter the list of top ten biggest media companies in the CIS region," UMH Group President Boris Lozhkin said.