3AK is scheduled to be auctioned on 28 November, but new shareholder Mike Norris may have other ideas for the company.
Dominion Auctioneers has been appointed to undertake the “sale by public auction” of DCL’s 3AK broadcasting licence, which the company hopes will help retire nearly $3 million in debt and put the company back into a positive cash-flow situation.
Meanwhile, Jeff Chatfield today notified the sale of his 18% of DCL shares in a notice to the stock exchange that read:
We hereby notify and advise that Advent Television Ltd has entered into an agreement to sell, off market, its entire holding in Data & Commerce Ltd to Radio Australia Pty Ltd.
The individuals involved in Radio Australia have experience in operating and programming commercial metropolitan radio stations.
R J Chatfield, Managing Director, Advent Television Ltd
‘Radio Australia’ is a private company associated with Brisbane advertising businessman Mike Norris. Norris started his career in Brisbane radio in the 1970s with 4BH and has been freeing up cash this year by selling various assets, including his holdings in Star Broadcasting regional radio network (Queensland and South Australia). He recently bought some small media companies that have profitable income streams with good cash flow.
Norris, whose management team turned around struggling 4BH in 1995, told the Brisbane Courier Mail that he has offered to send in the same ‘fix-it’ team to 3AK now that he is a shareholder.
Mike Norris, who is not in favour of the impending auction, may throw a spanner in the works before the 28 November auction date. It is up to the company whether he is granted a seat on the board as a result of his significant share purchase. Although the purchase price of the Chatfield shares has not been revealed, at the going share price the purchase could have been around $1.4 million.
DCL’s annual report, released last week, shows that the company lost $9 million over the past financial year, an improvement on last year, where it lost $11 million. DCL shares this week traded at below 5 cents on some days. Earnings per share were negative, at – 8 cents per share.
The annual report reveals a complicated web of directors remunerations and loans, which have been juggled around to keep the company afloat during the last 12 months. The reports also shows that company executive Nick Karantzis received a total of $202,325 in salary and benefits during this year.
In its annual report DCL lists the 3AK licence as being worth $3,148,000, while 3MP’s licence is valued at $5,809,000. While 3MP has recorded “small operating profits,” the report says 3AK has been responsible for “large operating losses” for the company.
In a letter from directors contained in the annual report the company says the year “has been a tumultuous one of great disappointment to shareholders.”
Ron Hall has indicated that he could be a potential buyer of the station when it goes to auction, and a gaggle of smaller networks may by interested if the price is right. radioinfo also recently revealed that there is potential interest from at least one American radio network.
Despite recently getting a real estate auctioneers credentials, there is no word whether former 3AK broadcaster John Blackman will be involved in the auction, but he is having a lot of fun on his website speculating on the sale price for the station (click below).
A copy of the auction information memorandum is available from Dominion on 02 9648 5466.