Ten Network Holdings will sell its Eye Corp outdoor advertising business to Outdoor Media Operations (OMO) for up to $145 million.
The deal includes Eye Corp's Australasian, US, UK and Indonesian operations and will be paid with up to $120 million in cash, with the remainder deferred over a three year period. OMO, which owns outdoor advertising specialist oOh!media, plans to sell the US and UK businesses with the assistance of Ten.
The $145 million sale price does not include approximately $16 million of "onerous contracts", which will be retained by Ten but subcontracted to OMO.
Ten's chief executive and managing director, James Warburton, said the broadcaster was pleased with the outcome of its strategic review, which led to the sale.
“Successful completion of the transaction with OMO will be good news for Ten," he said in a statement. "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.”
Ten will use the proceeds from the sale to pay down debt. The company also recently raised $200 million by issuing new shares in an effort to strengthen its balance sheet.
Contact this reporter at bswift@www.if.com.au or on Twitter at @bcswift.