SYDNEY: Australian pay-TV company Foxtel will spend up to A$77 million ($59.39 million) for a 15 percent stake in struggling free-to-air broadcaster Ten Network Holdings Ltd, Foxtel said in a statement on Monday.
The deal will end an eight-month sale process after Ten, which consistently rates the worst of Australia’s three commercial networks, appointed Citigroup in November to help it assess takeover approaches.
Media reports said a number of American companies including cable TV giant Discovery Communications Inc had been eyeing investments in Ten, but had withdrawn, leaving the way clear for News Corp’s half-owned Foxtel.
Ten’s shares fell as much as 6 percent after the announcement, but recovered to be trading down 1.8 percent while the broader market was down 0.9 percent.
