Southern Cross Broadcasting has been boosted by the sale of its 30% investment in Digital Distribution Australia (DDA) to WIN Corporation for almost $26 million.

The sale will result in a specific item gain of around $15.5 million which, effectively, is a reversal of the $17.2 million provision for writedown against the investment and receivables in DDA made by SCB during the 2003 financial year.

Southern Cross Managing Director, Tony Bell, says: “our DDA investment has served us well, by providing infrastructure necessary to support the regional rollout of digital television. The sale will give WIN Corp full control to expand and develop DDA’s telecommunications business including wholesale data carriage services to a variety of users. With a passive 30.5% interest, we are not prepared to provide the significant capital that this expansion may require.

“The proceeds of the sale will be applied towards debt reduction, and is subject to WIN obtaining Foreign Investment Review Board, financier and other approvals.”