Prime Media Group (PRT) today announced the sale of its Australian outside broadcasting operations.
OSB Australia has been sold to Gearhouse Broadcast Pty Ltd for $8.5 million in cash plus an earn-out of $3 million payable in instalments between December 2012 and December 2014. Prime will hold a 15 per cent shareholding in the merged outside broadcasting business, which recently extended its agreement with Fox Sports for Rugby Union coverage through to 2015. The sale proceeds will be used to pay down Prime Media Group debt. An impairment of $1 million will be incurred on the disposal, however, Prime, will avoid $13 million of required capital expenditure for the business.
“The sale of OSB Australia continues our program of divesting non-core assets to refocus on maximising earnings from: television and radio,” Prime Media Group CEO Ian Audsley said. In July, Prime sold its New Zealand outside broadcast operator, OSB New Zealand, to SKY Television Limited and also announced the sale of Moonlight Cinema to Amalgamated Holdings Limited.