CVC-backed Nine Entertainment sells CarSales.com stake
CVC Capital Partners Asia Pacific-owned Australian TV network Nine Entertainment has sold its 49% stake in CarSales.com for a reported A$565.5 million ($569 million) to institutional investors - a move that has spurred questions about Nine’s planned IPO, as well as its backer’s motivation to offload the moneymaking auto site.
According to local reports, the sale represents a play by CVC to lighten Nine Entertainment's debt burden ahead of a future listing. Nine Entertainment, which operates the second-ranking domestic TV network and owns a 50% stake in ninemsn, was initially believed to launch its IPO process by the spring, though CVC's decision to offload CarSales.com suggests that Nine may not become publicly listed soon. CarSales.com sold at a 6% discount to its Friday closing price.
CarSales.com is touted as Australia's top auto website, and has consistently reported operating profits. According to The Sydney Morning Herald, the website's sale will be used to alleviate the A$4.1 billion worth of debt CVC accrued with it acquired Nine Entertainment, formerly called PBL Media, in 2006.
In January, CVC reportedly named Goldman Sachs, Credit Suisse and UBS as its advisers for Nine Entertainment's intended public debut. Last year, CVC denied reports that it was looking to launch the company by this month, although representatives from the firm previously told AVCJ that they do not rule out an IPO in the future.
More on Australasia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.