Australian pay-television operator Foxtel has agreed a deal to acquire a 15-per-cent stake in commercial broadcaster Ten.
Ten has confirmed a Aus$154m (€106m/$119m) capital raising that will lead to new shares issued at 15 cents per share – more than 40 per cent below their current price. Foxtel will take up half of the raising with a Aus$77m investment.
IG market analyst Evan Lucas told the News.com.au website: “It's a very good price from Foxtel's perspective. It’s a lot cheaper than what was expected.”
As part of the deal, Ten will take a 24.99-per-cent stake in Foxtel's advertising business, Multi Channel Network, which will also become a sales representative for the commercial broadcaster.
Ten will also have an option to become a 10-per-cent shareholder in Foxtel's online streaming venture, Presto, within the next two years.
Ten confirmed in April that it was considering an investment offer from Foxtel. The deal has been agreed as talks over the next cycle of rights for two of Australia’s major sporting codes, the AFL Aussie rules competition and the NRL rugby league tournament, prepare to start.