Court orders TEN to sell TX Australia shares…. for just $1.
Seven & Nine win a broadcast case due to TEN's 2017 administration.
- Published by David Knox
- on
- Filed under News
TEN has lost a legal battle which will see it paid just $1 by Seven and Nine for its one third share in TX Australia.
TX Australia is a joint venture of the three networks to broadcast signal around the country.
The case was brought about because under the shareholders’ agreement, a partner going into administration can trigger the other members buying it out.
TEN had taken the matter to court after PricewaterhouseCoopers offered 3 valuation models: one that valued TEN’s share at $1, valuing the entire business at $3, and another valuing it at more than $40 million with the entire business at more than $120 million.
Yesterday the Supreme Court of NSW ruled in favour of TX Australia, Seven West Media and Nine Entertainment, who were listed as defendants for the case.
A Seven spokesman said, “As a shareholder in TXA with Nine, we are gratified by the court’s decision and always thought the provision in the shareholders agreement was very clear about the consequences if a shareholder goes into administration.
“We note that TXA has offered to continue to provide the transmission service to TEN pursuant to TEN’s previous requests for tender issued to the market.”
Nine declined to comment.
“We are reviewing the judgment and considering whether to appeal,” a TEN spokesman said.
Source: Australian Financial Review
6 Responses
That’s crazy. They should definitely appeal that. Or at least offer Seven and Nine 50c each to stay in. Maybe even up the offer to $1. 😀
I wonder if CBS was aware of this when they bought TEN? Could they sue/get damages from the receivers?
Caveat Emptor.
Has Ten forgotten that Nine Network went broke a few years ago. Same rules should have applied to Nine Network surely? What a corrupt landscape we are working in 🙁
Nine didn’t go into receivership or administration though as far as I know
Correct. It’s a big difference.