PBL expects CVC's $526m next week

JAMES Packer's Publishing and Broadcasting said yesterday it expects to receive the $526 million from private equity firm CVC Asia Pacific's purchase of an additional 25 per cent stake in PBL Media - which owns the Nine Network and ACP Magazines - by next week.

JAMES Packer's Publishing and Broadcasting said yesterday it expects to receive the $526 million from private equity firm CVC Asia Pacific's purchase of an additional 25 per cent stake in PBL Media - which owns the Nine Network and ACP Magazines - by next week.

PBL said in a statement that, following the purchase, it would "hold a 25 per cent interest in PBL Media".

The final payment figure is $11 million higher than the $515 million PBL first said it expected to receive for the stake. Sources said this may have been due to additional interest CVC needed to pay to PBL, given that PBL originally predicted settlement on the transaction would occur in July.

The Foreign Investment Review Board announced it had approved the transaction yesterday, subject to local residency and control conditions that CVC must fulfil.

Red Earth Holdings BV, controlled by funds advised by CVC Capital Partners and CVC Asia Pacific, is set to take majority control of the PBL Media joint venture after receiving FIRB approval to buy a further 25 per cent stake from PBL.

Red Earth currently owns 50 per cent of PBL Media, with PBL the remainder, but is set to move to 75 per cent control.

In a statement PBL said certain condition had to be met for the sale to proceed.

"Confirmation is subject to certain conditions relating to PBL Media retaining Australian headquarters, an Australian senior executive team, a board containing a majority of Australians and holding the majority of meetings in Australia."

Additional reporting: AAP