Ten gets $ 30m lifeline as interest grows in network
TEN Network has been thrown a $ 30 million lifeline to keep the broadcaster on the air until the end of August.
The home of The Bachelorette, MasterChef and The Project is set to be sold or recapitalised by its new receivers and managers PPB Advisory within the next couple of months.
One media analyst believes Ten could attract upwards of $ 58 million, with private equity buyers and billionaires reportedly interested in the asset.
On Friday, Ten’s main lender, the Commonwealth Bank, appointed Christopher Hill, Phil Carter and David McEvoy of PPB Advisory to undertake the sale of the broadcaster.
PPB will manage the competitive tender program while voluntary administrators Kor- daMentha will continue to manage the day- to- day running of Ten.
In a statement lodged with the Australian Securities Exchange yesterday, Ten said PPB had negotiated a $ 30 million funding package which had the support of billionaire shareholder guarantors Lachlan Murdoch, James Packer and Bruce Gordon.
“This will allow the business to continue to trade as a going concern and enable the receivers and managers to undertake a sale process for, or a recapitalisation of, the business and assets of Ten Network Holdings Limited,” the Ten statement said.
Media analyst Steve Allen from Fusion Strategy said securing the funding deal until August 31 implied that Ten’s management were hoping to have the recapitalisation complete within two months.
Ten shares last traded for 16c on June 14, valuing the company at about $ 58 million.
The $ 30 million loan to Ten comes just days after the Federal Government abolished TV licence fees for the 2016- 17 financial year.
Ten expects the reduction in fees will save the broadcaster $ 22 million.