Southern Cross Media shares rally on sale of TV licences
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More news: Southern Cross Media shares rallied as it announced that it would sell its regional Queensland, southern New South Wales and Victoria television licences to Network 10.
Its shares were up 3.13% to $0.58 by 3:02pm AEDT but over the past 12 months have plummeted 39.84%.
Southern Cross Media to sell regional TV licences to Network 10
The news: Southern Cross Media has agreed to sell its television licences in the three aggregated markets — Queensland, southern New South Wales and Victoria — to Network 10.
The numbers: Under the terms of the agreement, SCA will be entitled to receive a share of the profit from the licences for five years after completion of the sale.
Based on current and forecast advertising market conditions, SCA expects to receive aggregate gross proceeds of between $15 million and $20 million over the period. The net value of these proceeds are expected to be between $10 million and $15 million.
The context: The sale follows SCA's announcement in August that it had recommenced a strategic review of its non-core regional television assets and was in active negotiations with several parties over potential deals.
The agreement with Network 10, which marks the first outcome of that strategic review, is subject to various approvals, with the two media groups aiming to complete the acquisition by the end of February 2025.
SCA said it has received interest from several other parties and remains in discussions regarding the sale of its television assets in Tasmania, Spencer Gulf/Broken Hill, Darwin, Remote Central and Eastern Australia.
The media group intends to use the proceeds of the sales to reduced its net debt.
The source: ASX announcement
