Nine Entertainment is selling its New Zealand business, Stuff Limited, to a management buyout headed by the current CEO, Sinead Boucher, for just $NZ1.
Boucher, a journalist and Stuff's former digital editor who grew the brand into the biggest digital news site in New Zeland, was appointed chief executive in August 2017
She says the deal gives Stuff, as a wholly New Zealand owned media business, far greater certainty in an industry navigating through the challenging waters of the post COVID-19 ad market.
“Today is an important moment for Stuff as a business,” she says.
“It is great to take control of our own future with the move to local ownership and the opportunity to build further on the trust of New Zealanders, who turn to us for local and national news and entertainment every day.
"We are looking forward to working closely with staff, customers and our audiences as we embark upon what we believe will be a great new era for the business and the independent journalism it is built on.”
For Nine, the direct proceeds from the sale, which is expected to complete by the end of this month, will be NZ$1.
However, Nine will retain ownership of the Petone print plant site in Wellington, which will be leased back to Stuff, the publisher of The Dominion Post, The Press and Sunday Star-Times.
Nine will also get 25% of the proceeds from the sale of Stuff Fibre sale to Vocus, plus up to another 75% over 36 months, depending on the Stuff business’ ability to raise funding.
Nine expects to book a costs against Stuff of between $A40 million and $A45 million when the company in August reports full year results.
The buy-out follows Nine terminating negotiations with Stuff rival NZME.
“We have always said that we believe it is important for Stuff to have local ownership and it is our firm view that this is the best outcome for competition and consumers in New Zealand,” says Hugh Marks, CEO of Nine.
Nine acquired Stuff in 2018 following its merger with Fairfax Media.
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