Dec 5, 2013

Nine float taking on water: cutting through the broadcast spin

There's a lot of hype around the sharemarket float of Nine Entertainment Co. You should only believe some of it. The demand for shares just isn't as strong as they want you to believe.

Paddy Manning

Crikey business editor

Channel Nine

The spin around the Nine Entertainment Co. float is so thick you can cut it with a knife. It’s a credit to the lead manager of the float, UBS, that it’s been able to get such a good run in the media, particularly The Australian Financial Review.

To recap: James Packer’s PBL Media sold Nine to private equity giant CVC Asia Pacific progressively for $5.6 billion in a series of masterful top-of-the-market deals between 2006 and 2008. The $3.8 billion in debt behind the deal almost sunk Nine in the wake of the financial crisis and after a torturous debt-for-equity restructure was negotiated last year — which saw CVC lose $1.8 billion — two key senior lenders, hedge funds Oaktree and Apollo, forgave some of its debt and emerged with 53% of the company.

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2 thoughts on “Nine float taking on water: cutting through the broadcast spin

  1. Phil West

    Virtually all media are facing the same problem, but free to air TV has a very big one. They do not own much content. This is why digital encroachment is such a big issue. Within a few years we will all be taking our TV via on demand streams.
    This is one ugly duck.

  2. Perry Ryan

    Yep sorry, wouldn’t touch this one with a bargepole.

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