Nine float set for December 6

Nine Entertainment Co, this morning issued its prospectus for an initial public offering (IPO) and listing on the Australian Securities Exchange,  in a bid to raise $650 million.

The prospectus will see David Gyngell rewarded with $17 million worth of cash and shares when the company floats next month, with trading set for 6 December.

This will be on top of remuneration up to $4 million in base pay and short term incentive bonuses.

Gyngell says the extra scrutiny the company will face will improve its performance.

“It’s all there in the prospectus for everyone to make their own decisions on what they want to do or not do,” Gyngell told The Australian.

“The prospectus is a very transparent process and we can now be benchmarked against some very good organisations like News Corp and Seven West Media.”

The prospectus indicates NEC is organised into three divisions, encompassing some of Australia’s leading media brands:

·          Nine Network broadcasts nationally through its metropolitan free-to-air television (FTA TV) network and affiliate arrangements;

·          Nine Events operates Ticketek, Allphones Arena and Nine Live; and

·          Nine Digital and Ventures: Nine Digital operates Mi9 and Nine Ventures is responsible for other smaller investments.

The IPO will be offered to eligible investors at an indicative price range of $2.05 to $2.35 per IPO share with an expected market capitalisation of $1,928 million to $2,168 million.

“We are excited about the IPO and providing new shareholders with exposure to our leading integrated portfolio of complementary media businesses. A listing on the ASX will help us to continue our strong momentum and consolidate our position as a leading FTA TV network in Australia, maintain our strong industry position and expand the Nine Events business, and continue to grow Mi9 and our other digital media assets. We look forward to welcoming our new shareholders,” said Gyngell.

TEN Network chief executive Hamish McLennan and Seven West chief executive Tim Worner have suggested Nine was not operating in the same environment as its two listed broadcast rivals because of its private ownership structure.

“It will be interesting to see their balance sheet and how they spend their money on content,”  McLennan said. “They’ll have to operate in a more transparent environment.”

Tim Worner said: “The market will decide what they’re worth … I’m looking forward to the scrutiny.”

US hedge funds Apollo Global Management will offload 40 per cent of its stake in Nine’s float just a year after a debt-for-equity swap, while Oaktree Capital  will put its 28 per cent shareholding in escrow until Nine’s first full-year result.

Gyngell and chief operating officer Simon Kelly will leave for a three-week trip tomorrow that starts in Singapore and Hong Kong, before moving to financial centres in the US, Canada and Britain.

Source: The Australian, The Age