Nine eyes December for $3b market listing
Nine boss David Gyngell this month completed a roadshow in the US and is meeting with 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 Area and stakes in Sky News operator Australian News Channel. Former federal treasurer Peter Costello sits on its board.
Despite the sharemarket soaring through 2013, 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 Nine 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, ahead of 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.
Jeff Browne - effectively second in charge of the network - recently stood down as managing director of Nine Network Australia to take up a new part-time role of executive director (commercial) of Nine Entertainment Co.
Nine has also recently won international cricket rights, was part of a $1.1 billion five-year deal for the broadcast rights to rugby league, and has sold its magazine arm to German giant Bauer.
Nine bought WIN Adelaide for $140 million earlier this year, and Tuesday's purchase, believed to be worth up to $200 million, expands the network's presence to five capital cities.
"Following detailed discussions with WIN proprietor Bruce Gordon and the completion of due diligence requirements, we are now in a position to finalise the contracts on this pivotal deal for the Nine Network," Mr Gyngell said in a statement.
David Mott, the former head of programming at Network Ten, has been appointed Nine Perth's managing director.
"He's coming home to help us build this market and really make an impact," Mr Gyngell said.
Frequently Asked Questions about this Article…
Nine Entertainment is expected to re-emerge as a public company by the end of the year, with CEO David Gyngell recently completing a US roadshow and meeting local investors.
The listing is being conducted by UBS, Morgan Stanley and Macquarie, meaning major investment banks are underwriting and handling the IPO process on behalf of Nine Entertainment.
US hedge funds Apollo and Oaktree now own about 99.5% of Nine. Previously, James Packer sold most of Nine to private equity firm CVC Asia Pacific in 2007, and CVC later crystallised a large loss when Nine was handed to its creditors.
Nine's assets include the free-to-air Nine Network, ticketing company Ticketek, Sydney stadium Allphones Arena, stakes in Sky News operator Australian News Channel, and it has sold its magazine arm to German publisher Bauer.
Nine bought WIN Adelaide earlier this year for about $140 million and is readying to take control of Channel Nine Perth from Bruce Gordon (a deal believed to be worth up to $200 million), expanding the network to five capital cities. It has also won international cricket rights and was part of a $1.1 billion five-year rugby league broadcast deal.
Investors are likely to focus on free-to-air television's prospects for maintaining advertising market share and Nine's ability to close the gap with market leader Seven, even though Nine has cleaned up its previously debt-laden balance sheet.
Key figures mentioned include CEO David Gyngell (who led the US roadshow), board member and former federal treasurer Peter Costello, Jeff Browne (who moved from managing director of Nine Network Australia to executive director – commercial at Nine Entertainment Co.), and David Mott (appointed managing director of Nine Perth).
Yes — the Department of Communications this year paid $14.5 million to Channel Nine to help it acquire new equipment to move to digital news gathering.
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