Ten Network says it’s studying takeover, refinancing proposals

PROVIDENCE EQUITY PARTNERS is said to be one of the potential buyers for Ten Network Holdings Ltd. in Australia.
PROVIDENCE EQUITY PARTNERS is said to be one of the potential buyers for Ten Network Holdings Ltd. in Australia.

MELBOURNE – Ten Network Holdings Ltd., Australia’s No. 3 free-to-air commercial broadcaster, said it’s studying takeover or refinancing proposals received from a number of parties.

The proposed transactions “could result in a change of control of Ten or a refinancing of its existing debt facilities,” the Sydney-based company said in a regulatory statement today. It didn’t name any suitors or prices.

Potential buyers including Time Warner Inc., Providence Equity Partners LLC and Discovery Communications Inc. together with local pay-TV operator Foxtel have all approached the company in recent weeks, people with knowledge of the matter said last month. Foxtel is jointly owned by Rupert Murdoch’s News Corp. and phone company Telstra Corp.

Ten Network, which broadcasts the U.S. television show “Homeland” in Australia, has been exploring options after CEO Hamish McLennan took steps to cut costs and jobs in response to a shrinking pool of viewers. The company, which lacks the rights its rivals have to broadcast the nation’s most popular sports, is forecast to post losses through 2017, data compiled by Bloomberg show.

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Ten said last month it had appointed Citigroup Inc. to advise on strategic options and that there was no guarantee of a deal being reached. The broadcaster has been working with the New York-based bank on various alternatives, including a sale, since at least July, people with knowledge of the matter said at the time.

The confidential, non-binding and conditional proposals will be considered by an independent board committee, Ten said today. They may or may not result in any transaction.

Discovery, the Silver Spring, Md.-based owner of the TLC and Animal Planet cable channels, has a market value of $23.4 billion. The company was considering a bid for Ten, CFO Andrew Warren said in a Nov. 20 interview. “There’s certainly a rationale for why that asset can make sense, but again, it comes down to price” and governance, Warren said.

Foxtel was looking at buying a small piece of Ten, the Australian newspaper quoted Murdoch as saying at News Corp.’s annual shareholder meeting last month.

Gina Rinehart, Asia’s richest woman, owns a 9.5 percent stake in Ten, according to data compiled by Bloomberg. Other shareholders include Lachlan Murdoch, as well as billionaire casino operator James Packer and Australian media executive Bruce Gordon, the data show.

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