Ten Network, CHAMP Private Equity agree Eye Corp sale
CHAMP Private Equity’s portfolio company oOh!media has agreed to pay A$113 million ($117 million) for Eye Corp, Ten Network Holdings’ outdoor advertising business. Last week it downsized its original offer of A$145 million to A$110 million.
A week prior, it was announced that the private equity firm would not proceed with the deal due to concerns that the previously agreed acquisition price ($148 million) was too high in the light of the Eye's poor financial performance. The target firm reported a loss of A$12.9 million for the 2012 fiscal year.
The purchase price consists of A$98 million in cash and A$15 million payable three years after the deal completes.
Outdoor Media Operations (OMO), oOh!media's parent company, was bought by CHAMP late last year.
As per the original deal agreement, OMO plans to retain the company's Australia, New Zealand and Indonesia operations but sell off the UK and US assets. The transaction will enable Ten to pay down debt and strengthen its balance sheet.
According to PricewaterhouseCoopers' (PwC) latest Global Entertainment and Media Outlook, out-of-home advertising in Australia increased by 3.7% in 2011 to reach $510 million. The market is expected to grow by 5% compounded annually to $650 million in 2016.
Earlier this year, Quadrant Private Equity agreed to form an outdoor advertising joint venture with APN News & Media worth A$272 million.
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.