Bruce Gordon's WIN to become Nine's largest shareholder

Billionaire Bruce Gordon is expanding his presence in the metropolitan free-to-air television market following a deal for WIN Corporation to become the largest shareholder in Nine Entertainment Co.

WIN, through Mr Gordon's private investment vehicle, Birketu, will purchase approximately 13 per cent of Nine from US hedge fund Apollo, which has a 22 per cent holding. The deal is expected to complete on November 9 and will leave Apollo with 9 per cent of Nine, the home of popular shows The Voice and The Block.

Perfect credentials: Departing Channel Nine boss David Gyngell could be an ideal addition to the ARL Commission.Credit: Louie Douvis

It will take WIN and Birketu's holding in Nine to 14.95 per cent.

Nine and WIN are currently renegotiating their affiliate agreement, which expires in December, with Nine pushing for higher fees.

The deal also comes amidst a renewed push by regional broadcasters, and supported by Nine and Fairfax Media, publisher of The Australian Financial Review and BusinessDay, for the removal of the 'reach rule' preventing TV operators from broadcasting to more than 75 per cent of the population, as well as the 'two out of three' rule stopping media companies from owning a TV station, radio network and newspaper in the same market.

The removal of the reach rule may allow regional and metropolitan broadcasters to merge.

Mr Gordon also owns just under 15 per cent of Network Ten Holdings.

The ACCC is due on Thursday to hand down a ruling on whether to allow Foxtel to purchase 14.9 per cent of Ten Network Holdings, a deal which would reduce Mr Gordon's influence at the network.

Apollo has not asked to step down from Nine's board – Kevin Crowe, a principal at hedge fund, has been on the free-to-air broadcaster's board since February 2013.

UBS advised on the deal on the Nine-Apollo side, while KPMG's Jon Adgemis tended to WIN.

"WIN has been a long time investor in Free to Air Television in Australia with investments in a number of Television broadcasters," the company said in a statement.

"WIN and the Gordon family have had a close association with Nine dating back to the early days of television in Australia when Bruce Gordon was a director on Sir Frank Packer's Channel Nine board. WIN has been an affiliate of Nine in Regional Australia for the last 26 years."

More to come.