New agreement on EYE sale for TEN
TEN reaches an agreement with Outdoor Media Operations over the sale of its outdoor media company.
- Published by David Knox
- on
- Filed under News
The sale of TEN’s outdoor media company Eye Corp to Outdoor Media Operations Pty Limited will finally be resolved today, priced at $113m, lower than the original bid of $145m.
A statement said: “The new agreement includes EYE’s operations in Australia, New Zealand, US, UK and Indonesia. It values EYE’s Australia, New Zealand and Indonesian operations, excluding the retained Australian onerous contracts, at $113 million. This will comprise gross cash proceeds of $98 million and deferred consideration of $15 million payable three years post completion.
“The final cash proceeds will be subject to adjustments in respect of the ultimate sale proceeds of the US and UK operations working capital levels and transaction costs.”
Some of EYE’s contracts will be retained by TEN but the operation will be subcontracted to OMO, estimated to be approximately $16 million.
OMO also plans to on-sell its UK and US operations to third parties.
TEN intends to use the proceeds to pay down debt.
0 Responses
Is ASIC, ASX or ACMA looking at the “interesting” movements on the Ten share registry and whether the directors are acting in the best interests of Ten and not other companies?