UPDATE 2-MTG sells Czech TV stake, eyes online gaming investment

(Adds background, updates shares)

Jan 25 (Reuters) - Media group MTG, controlled by Swedish investment firm Kinnevik, said on Wednesday it had sold its stake in Czech FTV Prima Holding and was considering raising its ownership in online gaming firm InnoGames.

* MTG says cash transaction values 100 pct of FTV Prima Holding at enterprise value of EUR 237.4 mln ($254.6 mln)

* Says sells 50 pct stake in Czech FTV Prima Holding for 11.2x trailing 12 month EBIT and total cash return of 2x original investment to Denemo Media

* Says considering using proceeds to increase stake in InnoGames from 21 pct to 51 pct, based on the same enterprise value of EUR 260 mln for 100 pct that MTG paid for its initial investment

* “This deal is in line with the strategic transformation we are undergoing right now from traditional broadcaster to a global digital entertainer,” CEO Jorgen Madsen Lindemann tells Reuters

* Lindemann says he is happy with price and deal

* Says has opportunity to increase ownership in InnoGames even further after raising stake to 51 pct

* Says has the right to buy up to 100 pct in InnoGames in several tranches until 2022

* Says FTV Prima contributed SEK 1,226 mln of sales and SEK 201 mln of EBIT for the twelve months to the end of Q3 2016

* Says closing is subject to local regulatory approval and expected in Q1 2017

* Denemo Media is a Czech JV between Denemo Invest and GES Media Asset, which already holds 50 pct in FTV Prima

* GES Media Asset is run by Czech financier Ivan Zach and Denemo is owned by Czech businessman Vladimir Komar

* FTV Prima’s Czech competitors include TV Nova, owned by Central European Media Enterprises

* MTG entered the multi-billion dollar online gaming market by taking a 35 percent stake in InnoGames in October last year

* MTG shares rise 1.4 pct at 0913 GMT Source text for Eikon: Further company coverage: ($1 = 0.9326 euros) (Reporting by Helena Soderpalm; editing by Niklas Pollard)