Eye sale cashes up Ten for bid on NRL rights
TEN Network has sold outdoor advertising business Eye to oOh!media in a deal worth possibly $145 million, putting the free-to-air network on a firmer financial footing as it bids for NRL broadcast rights.
The media company will receive $120m in cash from the outdoor advertising company's owner, Champ Private Equity, and a deferred consideration of $25m payable three years after completion.
Ten chief executive James Warburton said proceeds from the sale would be used to pay down debt and strengthen the balance sheet after last month's $200m capital raising, as a $US125m ($120m) debt facility matured in March.
"It will make our balance sheet stronger by further reducing debt and will give us additional opportunity to invest in the creative renewal of Ten's television content," Mr Warburton said.
Ten's group chief financial officer Paul Anderson said it had not decided how much of the proceeds would be invested in programming, but acknowledged the deal could boost its interest in the NRL sports rights.
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