Australia’s least favourite television network – Ten Network – has announced the sale of its EYE Corp outdoor advertising business to Champ Private Equity for up to $AU145 million. The sale will proceed via Champ’s outdoor media interest Outdoor Media Operations – OMO – owner of oOh!media.
Ten will receive $120 million cash on completion of the sale, with $AU25 million deferred for three years, the full payment of which will depend on various factors. One of those factors is the price that OMO can get for EYE’s United Kingdom and US businesses, which intends to sell off immediately. Ten may also choose, or be required, to repurchase those businesses if they are not sold within an agreed timeframe.
Ten is also keeping oround $AU16 million worth of “onerous contracts”, but subcontracting the operation of them to OMO. The Ten statement notes certain of EYE’s Australian contracts will be retained by Ten, but the operation of the relevant assets will be subcontracted to OMO. The net present value of these contracts is estimated at around $AU16 million :: Read the full article »»»»