Two significant sales have been announced this morning, with 2CH and 1377AM Melbourne changing hands.
Pacific Star Network has signed an agreement to acquire all the shares in EON 2CH Pty Ltd with the sale to be completed by July 1, telling shareholders that the cash consideration payable for 2CH and Licences would be approximately $11.2 million, excluding GST.
PNW will also issue 10,000,000 new PNW shares to EON’s shareholders at a deemed issue price of $0.225 per share.
Managing Director, Craig Hutchison, says: “The opportunity to own and run a commercial licence in Sydney is rare, and on a station and signal that has built and audience and a following. With our agreement to syndicate Nine Radio Content ending, and the savings that stemmed from that, it made sense to plan for the long term as we invest into and expand our footprint into Australians biggest city.”
Pacific Star is also in negotiations to acquire the 1539AM Sydney, 1593AM Melbourne and 90.7FM narrowband radio licences.
Meanwhile ACE Radio Broadcasters have entered into an agreement to purchase PNW’s 1377AM Melbourne radio licence, which should fund some of the 2CH purchase.
The transactions announced today mean that the final documentation for PNW’s $13.5 million in debt funding announced in May will be amended to allow for the completion of the EON sale.
PNW is also forecasting a return to a growth in revenue and earning in 2021 once the economy begins to open up, and despite a 35% downturn in 2H20 revenue, they are predicting their 2H20 earning to be close to break even.