Nine back in play with public float expected
Fresh from a near-death experience last year, Nine boss David Gyngell this month completed a roadshow in the US and is meeting local investors this week.
Fund manager Simon Marais, an investor in Fairfax Media, said it was too early to say whether he would be interested in buying a Nine Entertainment stake.
The listing is to be conducted by UBS, Morgan Stanley and Macquarie, and comes as Nine Entertainment readies to take control of Channel Nine Perth from media mogul Bruce Gordon.
Assets of Nine Entertainment Co include free-to-air TV station Nine Network, ticketing company Ticketek, Sydney stadium Allphones Arena and stakes in Sky News operator Australian News Channel. Former federal treasurer Peter Costello sits on its board.
Despite the sharemarket soaring, there has been a dearth of quality, large initial public offerings. And although Nine has cleaned up its once debt-laden balance sheet, investors are expected to zero in on free-to-air television's prospects in maintaining its share of the advertising wallet, and Nine's ability to narrow the gap with market leader Seven.
The Department of Communications this year paid $14.5 million to Channel 9 to help it acquire new equipment to move to digital news-gathering.
Billionaire James Packer sold most of Nine and its related assets to private equity firm CVC Asia Pacific for about $5 billion in cash and debt in 2007, before the financial crisis. CVC crystallised a loss of about $2 billion last year when it was forced to hand Nine to its creditors. US hedge funds Apollo and Oaktree now own 99.5 per cent.
Frequently Asked Questions about this Article…
Nine Entertainment is expected to re-emerge as a public company by the end of the year, with a public listing being prepared by investment banks UBS, Morgan Stanley and Macquarie.
US hedge funds Apollo and Oaktree currently own about 99.5% of Nine Entertainment. The planned public float is being handled by UBS, Morgan Stanley and Macquarie.
Nine Entertainment’s assets include the free-to-air Nine Network, ticketing company Ticketek, Sydney’s Allphones Arena and stakes in the Sky News operator Australian News Channel.
Although Nine has cleaned up its debt, investors are likely to focus on free-to-air television’s ability to maintain or grow its share of the advertising market and whether Nine can narrow the ratings and ad-revenue gap with market leader Seven.
Nine’s CEO David Gyngell completed a roadshow in the US and has been meeting local investors, signalling management is actively promoting the business ahead of the planned public float.
Yes — Nine is preparing to take control of Channel Nine Perth from media mogul Bruce Gordon as part of its corporate changes ahead of the public listing.
The Department of Communications paid $14.5 million to Channel 9 this year to help it buy new equipment for the transition to digital news‑gathering.
In 2007 James Packer sold most of Nine and related assets to private equity firm CVC Asia Pacific for about $5 billion. CVC later crystallised a loss of about $2 billion when it was forced to hand Nine to its creditors, after which US hedge funds Apollo and Oaktree became the main owners.
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