Nine Sells Nine Live Business For $640 Million

Nine Sells Nine Live Business For $640 Million
SHARE
THIS



Nine Entertainment has signed an agreement to sell 100% of its Nine Live business to funds advised by Affinity Equity Partners (Affinity) for an enterprise value of $640 million.

The transaction represents an attractive valuation for Nine Live and provides significant scope for enhanced shareholder returns, whilst retaining substantial balance sheet flexibility to pursue investment opportunities that might arise.

As part of the transaction, Affinity and NEC have also entered into certain contractual arrangements which preserve the respective commercial relationships and benefits that have prevailed during NEC’s ownership of the Nine Live business.

David Gyngell, chief executive officer of NEC, said: “Nine Live has grown strongly under NEC ownership for the past eight years. The team, led by Geoff Jones, have done a remarkable job expanding the business into Touring and Events and, more recently, into international sports and exhibitions.

“The sale of the business provides an attractive outcome for NEC shareholders, releasing significant proceeds to enable enhanced shareholder returns while retaining substantial financial flexibility.  We will also retain a commercial relationship with the business and look forward to continuing to work together in areas where there are mutual benefits between NEC and Nine Live.

“With the sale of Nine Live, our focus now is on optimising the performance of our free-to-air TV, digital and subscription streaming businesses and maximising returns to our shareholders.”

Brett Sutton, head of Australia and New Zealand at Affinity Equity Partners, said: “Affinity is excited to invest in Australia’s leading live events and ticketing company. Nine Live is an excellent company with strong management and has the capacity for significant growth throughout the region, which aligns with Affinity’s investment strategy. Affinity looks forward to partnering with Nine Live to explore opportunities for expansion while maintaining Nine Live’s outstanding track record of customer service.”

Net proceeds from the transaction are expected to approximate 64 cents per share.

The sale is expected to complete on 31 July 2015 subject to certain customary completion conditions being satisfied.

Following completion, NEC will be in a net cash position, with undrawn bank facilities, providing significant balance sheet flexibility to explore future options as they arise.  Subject to alternative uses of capital, it is the Board’s intention to increase returns to shareholders through an ongoing program of on-market share buy-backs, incremental to the $150m program announced in February, and effective from the FY16 interim dividend, to sustainably increase the annual dividend payout ratio to 80-100% of Net Profit after Tax (pre Significant Items), the majority of which is expected to be franked.  Through this process, net leverage will be sustained well below 2X EBITDA.

Latest News

Nine Appoints 9Honey Editor
  • Media

Nine Appoints 9Honey Editor

B&T's editor was coincidentally dribbling honey on his shirt while typing this. And by typing, we mean copy and pasting.

Y&R Sydney Scores Best&Less   
  • Media

Y&R Sydney Scores Best&Less  

Y&R wins Best&Less amid rumours the clothing shop its changing name to 'Somewhat OK&Reasonably cheap'.

Women In Media Profile: Judy Sahay
  • Media

Women In Media Profile: Judy Sahay

B&T's Women in Media profiles are like a wave washing over you. Even more so if an actual wave washes over you.

by B&T Magazine

B&T Magazine
How B2B Companies Can Use Their Customer Data More Effectively (And Why They Need To)
  • Marketing
  • Opinion

How B2B Companies Can Use Their Customer Data More Effectively (And Why They Need To)

In this opinion piece, SalesPreso co-founder and CMO Joel Thomson (pictured below) explains how B2B companies can use their data more effectively and deliver a personalised customer experience that matches their B2C counterparts. From the Cambridge Analytica scandal to the EU’s recent GDPR legislation, this year has prompted individuals all over the world to consider […]

Opinion

by B&T Magazine

B&T Magazine
M&C Saatchi Launches THIS Film Studio
  • Advertising
  • Marketing
  • Media

M&C Saatchi Launches THIS Film Studio

Not one to rest on its laurels, M&C Saatchi unveils new production studio it hasn't called 'Not One To Rest On Laurels'.

Creative Agency Launches Project Management Tool ‘Hassl’
  • Advertising
  • Technology

Creative Agency Launches Project Management Tool ‘Hassl’

Yesterday at TedX Melbourne the team behind award-winning, Melbourne-based agency Your Creative launched their new tech venture Hassl, the project management platform taking on Trello and the likes. With the belief there was a better design solution to project management, the platform has been developed over the last two years in collaboration with their clients. […]

ABC Axes Tom Ballard’s Tonightly
  • Media

ABC Axes Tom Ballard’s Tonightly

It's one of the ABC's edgier, controversial shows, but Tom Ballard's proven too edgy and controversial for ABC chiefs.

Taboola Strengthens APAC Programmatic Offering With New Partnership
  • Advertising
  • Media

Taboola Strengthens APAC Programmatic Offering With New Partnership

Global discovery platform Taboola has announced a strategic partnership with Wider Planet, Korea’s largest demand-side and data management platform. The partnership builds on Taboola’s programmatic efforts in Asia-Pacific, and will bring together Korea’s largest demand platform for agencies and brands to provide access to Taboola’s global audience through premium publisher placements. The partnership means advertisers […]

The Haus Picks Up Two New Clients
  • Marketing

The Haus Picks Up Two New Clients

The Haus announces two new client wins. Admittedly, not as good as winning three, but far better than losing four.

businessman using tablet PC and information communication technology concept. IoT(Internet of Things). GUI(graphical user interface). paperless office.
  • Marketing
  • Technology

Smartly: The Future Of Martech Is Automated

Automated ad buying platform, Smartly was at the centre of the tech innovation stage at the Online Retailer conference 2018. Smartly head of ANZ Marta Bonzanini (pictured below) discussed the integral role automation plays in the future of marketers and creatives. “If an ad is not performing as well as planned, you probably have some […]

Messenger Launches Video Chat AR Games
  • Technology

Messenger Launches Video Chat AR Games

For the moments when we can’t be together IRL, Messenger video chat helps you connect in real-time with the people you care about most. Chatting face-to-face live makes all the difference when you have exciting news to share, you need a study buddy for a big test, or you simply want to pass the time […]

Sphere Wins Stockdale And Leggo
  • Media

Sphere Wins Stockdale And Leggo

Sphere snares Stockdale & Leggo business, which is a real estate group & not a simmer sauce as first reported on B&T.

Aussie AgTech Start-Up Leads Global Farming Innovation
  • Technology

Aussie AgTech Start-Up Leads Global Farming Innovation

With Aussie farmers facing so many challenges, could the answer be Blockchain technology? Ranking top 10 at this year’s Overseas Talent Entrepreneurial Conference (OTEC), pitching against 32 other start-ups from around the world, Aussie start-up Agunity are leading AgTech innovation. Having won the right to represent Australia during Investible’s nation-wide pitch competition, AgUnity took to […]

Women In Media Profile: Carolyn Bollaci
  • Media

Women In Media Profile: Carolyn Bollaci

Facebook's Carolyn Bollaci is the latest to sup at B&T's truth serum we prefer to call our Women in Media profiles.

by B&T Magazine

B&T Magazine
Vic Govt Unveils ‘Tafe + Jobs’ Via Fuel Agency
  • Advertising
  • Campaigns

Vic Govt Unveils ‘Tafe + Jobs’ Via Fuel Agency

The Fuel Agency has launched the new ‘TAFE + Jobs’ campaign, aimed to promote and drive applications and enrolments for courses starting in 2019 There’s a lot happening in Victoria, with record investment in road and rail projects, and in the health, community and disability sectors. As a result, there’s greater demand for skilled workers. […]

Rakuten Marketing Appoints New CEO
  • Marketing
  • Technology

Rakuten Marketing Appoints New CEO

Rakuten has a new CEO. However, judging by the tired handshake photo, B&T doesn't have any new ways of illustrating it.

Why Consumers Block Your Advertising
  • Advertising
  • Opinion

Why Consumers Block Your Advertising

Who better to explain why your ads are getting blocked than a real ad blocking expert. As B&T has done right here.

Opinion

by B&T Magazine

B&T Magazine