Small operators and new players pick up Mac Bank licence sales

Janet Cameron, Brad & Judy Smart, Guy Dobson & Rex Morris, Coastal Broadcasters and Bill Caralis have successfully bought a range of licences that were required to be sold by Macquarie Southern Cross Media as part of its recent acquisition deal. Macquarie Bank has made $34.5 million from the sale.

Macquarie Media Group has sold 19 Australian regional radio licences, including the 15 licences that were required to be divested as part of the undertakings given to the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC) when MMG acquired Southern Cross Broadcasting in November 2007. The company has also sold associated licences in Young, Charters Towers, Burnie and Devonport.

The successful acquirers are:

The details of the purchase price and terms of the individual transactions are confidential, but Macquarie Bank has derclared that it “has no ongoing equity interest or debt financing exposure to any of these purchasers or licences,” an important point given ACMA’s past ruling on the Stuart Simpson underwriting deal. The final sales were completed yesterday.

The purchasers, the terms of the sales agreements as well as any agreements relating to the ongoing services between the purchasers and MSC, have been notified to ACMA and/or ACCC to the extent required.

MMG will use the sale proceeds to grow the Group or pursue capital management initiatives. The full year contribution of the licences being divested is less than 5% of MSC’s annual earnings before interest, tax, depreciation and amortization, so their sale is expected to have a minimal impact on MMG’s distributions.