Ten Network denies concerns over Eye sale to CHAMP

It was reported in July that the deal values Eye at up to A$145 million ($148 million), of which A$120 million will be paid in cash on completion, with the remainder due in three years' time. But the Australian Financial Review claims this figure may be optimistic after Outdoor Media Operations (OMO), oOh!media's parent company, queried Eye's financials.

Ten rebuffed the story however, stating that talks are continuing between the two parties.

OMO was bought by CHAMP late last year. It plans to retain Eye's Australia, New Zealand and Indonesia operations but sell off the UK and US assets. Ten will either fund these businesses until they are divested and receive a share of the sale proceeds, or reacquire them from Outdoor Media.

If completed, the transaction will enable Ten to pay down debt and strengthen its balance sheet.

Eye's EBITDA fell 35.6% year-on-year in the first half of 2011-2012 to A$7.1 million, having been affected by difficult trading conditions in the pre-Christmas outdoor advertising market in Australia and New Zealand. Ten's television business posted a 40.2% decline in profit to A$56.8 million. Overall, the company saw its EBITDA fall by 39.7% over the period, to A$63.9 million.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

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