Ten to mull over multiple offers

By AdNews | 3 December 2014
Ten's Pyrmont building has gotten a face lift

Contrary to press speculation, Network Ten has told the market that it is considering multiple offers as part of the sales process being run by Citigroup.

Press reports this morning had a Discovery Communications and Foxtel joint bid as the only player left in the running to takeover free-to-air (FTA) network Ten.

However, Ten told the market this morning that it would be looking at multiple proposals.

"Ten confirms that Citigroup has received non-binding, conditional proposals from a number of parties in relation to transactions which, if implemented, could result in a change of control of Ten or a refinancing of its existing debt facilities," it said.

"An independent committee of the board of Ten will now consider those proposals in conjunction with Citigroup."

The Australian said this morning that it believed that the sales process had failed to turn up any firm bidders for the company, aside from the Discovery-Foxtel bid.

The paper reported that the offer would come in at the 20c-25c per share range, which would be below its current market value.

Ten told the market that it would now consider multiple offers with Citigroup, and warned that the offers "may or may not result in a transaction which is acceptable to the company."

It also told shareholders that the offers could result in either a change of control of the company or a re-financing of its existing debt facilities.

Should the Discovery-Foxtel bid come off, it would potentially create a billion dollar sales alliance which could rival Seven West Media for scale.

Media buyers have previously told AdNews that having access to both pay-TV inventory through MCN and FTA inventory through Ten would be an interesting proposition, with MCN's recent move to trade Foxtel inventory programmatically potentially bringing FTA inventory into the fold.

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