Company News Summary
Ten Network Holdings Enters Agreement for the Sale of Eye Corp
Original announcement: TEN enters Agreement for the Sale of Eye Corp
Ten Network Holdings announced that it has entered into an agreement to sell EYE Corp to Outdoor Media Operations (OMO), the owner of oOh!media, an Australian outdoor advertising specialist. OMO is controlled by Champ Private Equity. The transaction will incorporate EYE's Australian and NZ businesses, as well as the US, UK and Indonesian operations. The transaction values EYE, excluding retained Australian onerous contracts, at up to A$145m. This will comprise gross cash proceeds of up to A$120m at completion and deferred consideration of A$25m payable three years post completion. The company intends to use the proceeds to pay down debt. Combined with the A$200m gross proceeds raised through the recent entitlement offer, this transaction will provide additional refinancing flexibility ahead of the upcoming maturity of the company's US$125m (swapped into A$210m) USPP Facility due in March 2013.
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