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TEN expected to raise $225 million capital

Network TEN has gone into a trading halt ahead of expectations it will announce a $225 million capital raising.

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Network TEN has gone into a trading halt ahead of expectations it will announce a $225 million capital raising.

The Australian reports in a letter to the stock exchange this morning, TEN requested the halt pending an announcement about “a proposed capital raising and other initiatives”. The stock will remain halted until Friday.

The Australian Financial Review speculates the new shares are likely to be sold at about 20¢ each, which represents a discount of about 40 per cent to Monday’s close of 33¢.

In October CEO James Warburton denied TEN would need to raise new equity.

TEN’s annual general meeting takes place tomorrow in Sydney.

15 Responses

  1. An interesting piece on ABC24 this morning explaining how TEN’s shares have become worthless, aided by the new issue of another 1.125Billion (that’s Billion with a B) shares in the latest round.

  4. Lachlan Murdoch is on big money but why ? Since he has taken over TEN the station has gone from bad to worse.
    Murdoch needs to removed & somebody to take over the top job, maybe one of the managers that was sacked.

  5. From page 38 (the microscopic print at the foot of the page) “For the period 1 September 2011 to 31 December 2011 whilst Mr Murdoch was interim chief executive officer, a $1,300,000 management fee was paid to Illyria Pty Limited (wholly owned by Mr Murdoch)”.
    “Total remuneration for all non-executive Directors, last voted upon by shareholders at the 2007 AGM, is not to exceed $1 million per annum.”
    Salary $105,000 Super $9,000 Board Chair Fee $200,000. $1.614m in total. Is “remuneration” not a remuneration if it’s paid to a wholly-owned company? Hmmm. At least Packer donated his $20,000 to charity. Gina pocketed her $90,000. Not bad for only 8 Board meetings, $11,250 per meeting.

  6. Please do not tell that these big 4 moguls, can turn a 12.9 million dollar Loss by one company(petty cash value to all 4) into multi million dollar tax right offs?.

    I bet hedge fund shorters, follow Lachlan’s every move, because everything he touches turns to dust, just goes to show he seems to miss the help of his daddy’s best mate Gerry Mander.

    Times are changing, and perhaps just one media network can and will fail?

    Why is it when all the Ten’s failures of late are mentioned in print, one of their biggest flops “Breakfast” hardly ever gets a mentioned, who or what are they scared of?

  7. Ten shareholders (other than the big 4) are going to be so happy to hear that their shares, having halved in value over the last 6 months, are now going to be dragged down further by new shares being sold at a discount.

    I know that the thinking here is “short-term pain for long-term gain” but how many of Ten’s small-holding shareholders will live long enough to see the price return to near what they paid? Dividends soften the pain of a flat-lining or declining share-price but Ten’s shareholders didn’t even have that small comfort this time around.

  8. @rifraf posted: “they will be purchased by Gordon, Murdoch, Rinehart and Packer.”

    Yep, as what do they have to gain from such a move, ah let me see, a few Tax breaks along the way because one business is running at a loss perhaps.

    As per Aust Tax Laws (via ato.gov.au/businesses/content.aspx?doc=/content/45518.htm&page=40&H40):

    “If you are a sole trader or a partner in a partnership and you make a net loss from your business activity, you can claim that loss by offsetting it against your other income if you meet certain criteria.”

    Maybe these billionaires are not so silly doing with TEN what they are after all (especially if other shareholders jump off and the 4 get to 25% each eventually).

  11. As Murdoch says in the 2012 Annual Report (member.afraccess.com/media?id=CMN://2A706088&filename=20121113/TEN_01355308.pdf) “There is no question that Ten Network Holdings enters 2013 as a different
    company than it was just 12 short months ago”.
    Well ain’t that the truth!

  12. “Which barmy investors would risk their money with this bunch running the show” the majority will be purchased by the same that have done that over the last 2 years, they will be purchased by Gordon, Murdoch, Rinehart and Packer.

  13. @Jezza the….
    Investors that believe it has hit rock bottom and that the only way is up.

    Although I agree Murdoch shouldnt be allowed near any business ever again. To many train wrecks. He is no good.

  14. From June…..”The Ten Network is asking its shareholders, including its cluster of moguls, to raise $200 million to pay down debt and give it the ”flexibility” it needs to deal with an ”uncertain” ad market. Packer, Rinehart and Murdoch, along with long-term shareholder Bruce Gordon, have all committed to taking up their entitlement of shares, which are being offered at a 20 per cent discount to yesterday’s closing price of 64¢”.
    64¢ in June, 33¢ today, on Friday?? 20¢??

  15. Did they not raise capital of around 100 mill a yaer ago?

    Which barmy investors would risk their money with this bunch running the show…..

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