The board of directors of Modern Times Group has agreed to split the company into two by moving Nordic Entertainment Group into a separate entity.

Under the planned split, the shares of Nordic Entertainment will be distributed to shareholders of Modern Times Group, known as MTG, and will be listed on Nasdaq Stockholm.

MTG is anticipated to retain control of its esports, online gaming and digital video content operations, along with other minority holdings.

Meanwhile, Nordic Entertainment will include MTG Nordic Entertainment, MTG Studios AB and Splay Networks, and will focus on broadcasting, digital communication and content production. As a separate entity, it will be based in Stockholm.

MTG President and CEO Jørgen Madsen Lindemann and CFO Maria Redin will continue in their roles, while Anders Jensen, currently MTG executive vice president and Nordic Entertainment CEO, will become president and CEO of Nordic Entertainment.

"The full management teams and board members of Nordic Entertainment Group will be announced in due course," MTG board Chairman David Chance said.

MTG's board intends to propose the split during an extraordinary general meeting of shareholders in the second half of 2018.

The proposed split would depend on the termination of the company's $2.5 billion deal with TDC A/S.

TDC in February agreed to acquire MTG's broadcasting and entertainment business. However, the Danish telecom operator could back out after accepting a takeover bid from a consortium comprising Macquarie Infrastructure & Real Assets and Danish pension funds PFA, PKA and ATP.

MTG's board subsequently announced that a combination between the company's Nordic business and TDC is unlikely to push through.