TWO INTERNATIONAL FUNDS INVESTING IN CABLE TELEVISION IN CROATIA

ZAGREB, Oct 29 (Hina) - Two international investment funds, SEEF and SEAF, have recapitalised Croatia's Digitac City Media (DCM) with $6 million, which the company plans to invest in the building of a state-of-the-art national cable television network in Croatia. DCM was established by Elektromodul from Osijek and SEAF-Croatia (Small Enterprise Assistance Funds) in June in view of creating a national cable television network. The recapitalisation has made DCM the majority owner of the two funds, the other being SEEF (Southeast Europe Equity Fund), while Elektromodul holds a smaller interest. DCM has 40,000 cable television subscribers in Zagreb, Split, and Osijek. Plans include increasing the figure to 200,000 by the end of 2005. Besides 60 television and 34 radio stations, the company's own cable network will be able to provide Internet access and Pay Per View television services, as well as telecommunications services through the liberalisation of fixed telephony in Croatia. The building of the DCM infrastructure will employ around 100 people for the Zagreb area alone, the company's director, Alan Chelko, said on Monday. SEAF-Croatia, a United States society with limited liability investing in the increase of basic capital in small and medium- sized privately-owned Croatian companies, was founded in 1997. It is partly financed by the U.S. Agency for International Development and the Washington-based SEAF, which manages or owns 13 similar funds world-wide. SEAF-Croatia has invested $4 million in 16 Croatian projects thus far, with an average investment totalling approximately $250,000. The fund's average co-owning share in the companies it has invested in is 40 percent. SEEF is a private investment fund with a $150 million capital. It is sponsored and managed by branches of the Soros Private Funds Management LLC, and the U.S. government's Overseas Private Investment Corporation. (hina) ha sb