The case of the TX Australia tug of war drags on.
Five months after a court blocked an attempt by Nine and Seven networks to buy 10’s one-third stake for $1 dollar was blocked by the Supreme Court of NSW, a formal valuation for a deal is still being worked out.
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.
According to The Australian both Seven and Nine are intent on enforcing their rights to buy the stake, subject to a final valuation being reached.
In financial accounts for 2018 that were lodged with the Australian Securities and Investments Commission last week, 10 said the stake could be sold to the other two 33.3% shareholders or another party.
But such a move would also see them have to start paying for those services.
Last May 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. In May a court ruled in favour of the $1.
But after an appeal in December ruled in 10’s favour the network sent Seven a $1 coin it had sent them.
“Affixed with sticky tape is a $1.00 coin. Spend it wisely! All the best for the end of year festivities,” 10 said at the time.
Last year 10 returned to net profit of $72.65m, against a $351.57m loss in 2017, when the company was placed in administration and subsequently bought by CBS.