Foxtel CEO, Richard Freudenstein today welcomed the decision of the ACCC and the ACMA not to oppose the transactions that will see Foxtel acquire up to 15% of the shares in the Ten Network and the Ten Network purchase a 24.9% interest in MCN.
“These transactions will provide much needed capital for Ten and help it to grow revenues by building scale and enhancing services to clients by working with MCN,” said Mr Freudenstein.
“A stronger Ten will further enhance competition in an increasingly competitive local and international media industry.”
“The sales representation agreement, by which MCN is selling advertising for Ten, came into effect on 1 September. The teams are now integrated and working well to create better outcomes for clients of both Ten and Foxtel”, said Mr Freudenstein.
The proposed transaction remains subject to certain conditions and regulatory approvals, including by the FIRB.
Ten Network Holdings Limited (ASX: TEN) (“TEN”) today welcomed the Australian Competition and Consumer Commission’s (“ACCC”) decision not to oppose the proposed transactions between TEN, Foxtel Management Pty Limited, as agent for the Foxtel Partnership (“Foxtel”), and Multi Channel Network Pty Ltd (“MCN”).
It also welcomed confirmation from the Australian Communications and Media Authority (ACMA) that the proposed transaction would not give rise to a breach of the so called 2 out of 3 rule.
The proposed transactions will enable TEN to reduce debt and provide additional financial flexibility to continue its strong ratings momentum.
TEN Non-Executive Chairman, David Gordon, said: “We are very pleased to receive clearance from the ACCC and the ACMA for the proposed transactions.
“The approval from the ACCC and the ACMA represents another important step for TEN to conclude the strategic review process initiated by the Board last year.
“By entering into the transaction with Foxtel and completing our proposed entitlement offer to all TEN shareholders, TEN will receive the capital it needs to continue its turnaround. Through the arrangements with MCN, our advertising clients will receive the benefit of new efficiencies, improved data capability and broader integration opportunities,” Mr Gordon said.
The proposed transaction still remains subject to certain conditions and other regulatory approvals, including from the Foreign Investment Review Board
