Austereo not for Sale

The Austereo network denies it is for sale or that the group is considering spinning off assets.

The news comes amid Macquarie Bank’s move to establish a regional media fund after buying Reg Grundy’s RG Capital for $173 million.

The fund will be headed by RG Capital’s former Executive Chairman, Tim Hughes, and will focus on buying assets outside major capitals, which effectively rules out a bid for most of Austereo’s assets.

However, a report by Ben Power in The Australian Financial Review says there are rumours that the Macquarie-Virgin Group joint venture have been eyeing Austereo to provide a bigger platform for growth into radio.

Richard Branson is believed to have approached Hughes to run radio interests in Australia late last year.

Austereo chief, Michael Anderson, says: “Nothing is forever. The Board has not been advised of, nor has there been any discussions … if any have occurred, it’s been that this [a sale] is not going to happen.”

Anderson says he has “absolute reassurance that we’re not for sale” from major shareholder, Village Roadshow. “At this stage, not even a selldown.”

Village has said it could sell part of its 57% stake to fund a share buyback, although it would maintain control.

Anderson also says Austereo will not consider selling any of its assets:
“It’s very important for us to go through with two national networks.”

Apart from Austereo facing market threats from new players like DMG’s Nova network, the entire industry has to contend with further upheaval down the track with the introduction of digital.

Anderson is believed to be hatching a plan to leverage existing audience beyond radio into other areas, including the internet, databases and events.

Shares in Austereo closed up 3¢ yesterday at $1.44.