Seven, Nine to proceed with TX Australia claim.
Seven & Nine set to pay $11m for 10's ownership of broadcasting towers.
- Published by David Knox
- on
- Filed under News
In the ongoing saga of ownership of transmission tower business TX Australia, Seven and Nine are now looking to pay $11m each under a Shareholders’ Agreement.
After 10 went into administration it triggered a clause that the two rival networks could buy their stake in the business, which broadcasts signals around the country.
10 disputed the valuation of the business which led to a court case.
The (Nine-owned) Sydney Morning Herald reports a valuation of $22m is now on the table with Nine and Seven giving 10 notice of their intention to buy the 33.3% share.
That will leave 10 with a headache of deciding whether it will pay fees to TX Australia or use another another company such as Broadcast Australia, used by SBS and ABC.
At least the $22m valuation is more realistic than a report produced by PricewaterhouseCoopers which valued it at anywhere from $1 to $40 million. That prompted Seven commercial director Bruce McWilliam to send a $1 coin to 10 for 50% of 10’s share.
10 sent the $1 coin right back until valuation was resolved, adding, “Affixed with sticky tape is a $1.00 coin. Spend it wisely! All the best for the end of year festivities.”
Nine, Seven and 10 declined to comment.
Source: Sydney Morning Herald
4 Responses
So 10 aren’t allowed to reject the offer?
They have to sell no matter what?
When they went into administration it triggered a clause in the contract.
Hi David , I am not clear , what does this all mean ??
Seven, Nine, 10 own broadcast towers. Seven & Nine will purchase 10 share, meaning 10 may have to rent. See related stories.