Modern Times Group agreed to sell 95% of its shares in Bulgarian unit NOVA Broadcasting Group AD to investment firm PPF Group for €185 million.

The transaction values 100% of the business, according to a Feb. 19 news release.

MTG will use the proceeds from the deal to invest in its Nordic Entertainment and Studios units, as well as its global digital entertainment businesses. The company also intends to focus on these verticals moving forward.

The announcement to sell its Bulgarian unit comes after TDC A/S pulled out from a $2.5 billion deal to acquire MTG's broadcasting and entertainment assets. The Danish operator backed out from the deal after accepting a revised takeover offer of 50.25 Danish kroner per TDC share from a consortium led by Macquarie Infrastructure.

Citigroup Global Market acts as MTG's financial adviser in the current transaction.