Television broadcaster Ten Network Holdings has confirmed that it is selling its Eye Corp outdoor advertising arm for $113 million to a private equity-controlled company.
The sale is to Outdoor Media Operations (OMO), owner of oOh!media, an Australian outdoor advertising specialist that is controlled by Champ Private Equity.
The new sale price compares with a reported higher sale price offer of about $145 million only few months ago.
The new agreement to sell Eye includes Eye's operations in Australia, New Zealand, US, UK and Indonesia.
OMO, with the assistance of Ten, intends to on-sell the US and UK operations of Eye to appropriate third parties.
Ten in a statement on Wednesday said the sale agreement valued Eye's Australia, New Zealand and Indonesian operations, excluding the retained Australian onerous contracts, at $113 million.
The sale consideration will comprise $98 million cash and $15 million payable three years post completion of the sale.
Completion of the sale is expected on November 1.
Ten intends to use the proceeds from the sale of Eye to pay down debt.
Ten this month launched a wide-ranging cost-cutting program, including cutting up to 100 jobs. Ten recently revealed a $13 million loss for the year ending August 31.
Keep reading - next article