Prime TV mulls $25m takeover of Becker

SEVEN Network affiliate Prime Television may launch a $25.8 million takeover bid for production house and entertainment company Becker Group, as regional television operators look to expand outside their core areas.

SEVEN Network affiliate Prime Television may launch a $25.8 million takeover bid for production house and entertainment company Becker Group, as regional television operators look to expand outside their core areas.

Becker company secretary Robert Reeve told the ASX yesterday that Becker was "in discussions concerning a possible change in control transaction with Prime Television Limited at 40 cents a share".

He warned that the proposal was "incomplete", and "may or may not lead to a formal proposal being finalised".

Prime chief executive Warwick Syphers said last November that the group was "seeking other growth opportunities" in Australia, after the $28.4 million sale of its Prime New Zealand, a free-to-air station.

Earlier this month, Prime also took a 10 per cent stake in the Canberra-based telco and pay-TV operator TransACT.

Becker's latest profit result was disappointing: a 96 per cent fall to just $31,000, largely because of a poor performance by its film distribution business.

Healthcare king Paul Ramsay is Prime's largest shareholder with 51.26 million shares, or 41 per cent. He is also Becker's second-largest shareholder, with 12.72 million shares, or 19.7pc.

Many expect the regional players to be a prime focus of intensifying takeover activity once the new media laws are announced. Both Southern Cross and Prime are among companies mentioned as possible takeover targets.

Mr Syphers did not return The Australian's calls.

One analyst said a Becker takeover was "more high-risk than lucrative" for Prime.