Seven West Media is expected to soon resume the sale process for the remainder of its production business, which makes the popular Australian soap opera Home And Away.
The process was on hold but is set to resume shortly, say sources.
The operations, which also include My Kitchen Rules, Better Homes and Gardens and Border Security, are the most lucrative part of the studios business, although most of the revenue is generated from Home And Away’s international sales.
Home And Away is one of Australia’s most successful media exports, being sold to over 80 countries.
It is one of the most popular shows of its genre in Britain and is one of the highest-rating shows in Ireland and New Zealand.
Morgan Stanley was hired by Seven West to sell its production company, the largest in Australia, and is considered by some as the jewel in the crown for the free-to-air broadcaster.
Part of it has already been divested. Seven West offloaded its television production operations in the US and Britain to production company Beyond International this month, with some saying that the deal netted Seven about $3m.
Beyond already jointly owned the asset and the transaction saw it secure the remaining 50.98 per cent of the venture, plus its British production business, Seven West Studios.
The deal sees Seven West part with its international format and finished program distribution rights for the Rebel Wilson-fronted series Pooch Perfect, which has failed to resonate with a local audience.
Seven West Media was wrestling with a $541m net debt in December and is said to be nearing a deal with its lenders on debt covenants.
Some suggest a sale of Home And Away could help rid it of at least $300m in debt if sold at five times its annual sales.
Seven West’s market value is currently about $142m.
Most expect the Kerry Stokes-controlled company won’t be prepared to part with the intellectual property and commercial rights for the show.
For Home And Away, international sales generate about $60m annually.
Buyers are expected to include parties in the global production industry such as ITV Studios.
In February, Seven West announced a $67m loss for the six months to December.
Seven West also has Grant Samuel working on the sale of its Seven West Media Ventures business, which includes investments in lender SocietyOne, GP booking platform Health Engine and online job marketplace Airtasker.
Goldman Sachs is assisting with the sale of the transmission towers operation TXA Australia, which it jointly owns with Nine Entertainment.
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