Champ PE makes lower offer for Eye Corp

The news comes a week after it was announced that the private equity firm would not proceed with the deal due to concerns that the agreed acquisition price of A$145 million ($148 million), was too high in the light of the Eye's poor financial performance. The target firm's reported a loss of A$12.9 million for fiscal 2012.

"The offer is subject to final negotiation of the revised terms of a share sale agreement between Ten and OMO," said a statement issued by Ten.

Outdoor Media Operations (OMO), oOh!media's parent company, was bought by CHAMP late last year. If the deal with Eye goes ahead, it is likely to retain the company's Australia, New Zealand and Indonesia operations but sell off the UK and US assets.

The transaction would 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.

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• Topics
• Media
• Australasia
• Expansion
• CHAMP Private Equity
• Australia