Thakur
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Australia based Ten Network is planning to sell a 15 per cent stake in itself to Foxtel, which is half owned by Rupert Murdoch’s News Corp and Telstra Corp Ltd.
Foxtel will acquire the stake in the loss-making company for $59 million (A$77 million) at A$0.15 each, which is a 43 per cent discount to its closing price on Friday. Additionally, the company is also looking at raising another A$77 million with a rights issue.
Ten Network will utilise the new capital of up to A$154 million to reduce debt and provide additional financial flexibility. The proceeds of the capital raisings will be used initially to repay the drawn amount under the existing Commonwealth Bank of Australia (CBA) revolving cash advance facility, with any excess funds initially retained as cash. The $200 million CBA facility will continue to be available to fund Ten's ongoing operations, which will be utilised for working capital, payment of transaction-related expenses, selected investment in content and general corporate purposes.
As a result of this deal, a Foxtel representative will join the Board of Ten, which will be reduced in size to six directors.
Additionally, the deal also includes Ten taking a 24.99 per cent stake in Foxtel’s advertising business Multi Channel Network (MCN) and the option to become a 10 per cent shareholder in Foxtel’s subscription video on-demand service Presto TV. The deal is subject to approval by various regulatory authorities.
MCN will be the ad sales representative of Ten television and digital advertising inventory and will start selling its ad inventory from 1 September, 2015.
http://www.indiantelevision.com/television/tv-channels/news-broadcasting/news-corp-s-foxtel-picks-up-15-stake-in-ten-network-for-59-million-150615
Foxtel will acquire the stake in the loss-making company for $59 million (A$77 million) at A$0.15 each, which is a 43 per cent discount to its closing price on Friday. Additionally, the company is also looking at raising another A$77 million with a rights issue.
Ten Network will utilise the new capital of up to A$154 million to reduce debt and provide additional financial flexibility. The proceeds of the capital raisings will be used initially to repay the drawn amount under the existing Commonwealth Bank of Australia (CBA) revolving cash advance facility, with any excess funds initially retained as cash. The $200 million CBA facility will continue to be available to fund Ten's ongoing operations, which will be utilised for working capital, payment of transaction-related expenses, selected investment in content and general corporate purposes.
As a result of this deal, a Foxtel representative will join the Board of Ten, which will be reduced in size to six directors.
Additionally, the deal also includes Ten taking a 24.99 per cent stake in Foxtel’s advertising business Multi Channel Network (MCN) and the option to become a 10 per cent shareholder in Foxtel’s subscription video on-demand service Presto TV. The deal is subject to approval by various regulatory authorities.
MCN will be the ad sales representative of Ten television and digital advertising inventory and will start selling its ad inventory from 1 September, 2015.
http://www.indiantelevision.com/television/tv-channels/news-broadcasting/news-corp-s-foxtel-picks-up-15-stake-in-ten-network-for-59-million-150615
