SYDNEY – If a buyer is found for CanWest Global’s Australian media operations, they’re going to have to buy the whole thing.
CanWest owns 56.4% of TV/radio broadcaster and outdoor ad company Ten Group and the two companies announced today that Ten will help evaluate any potential bid to buy the Winnipeg company’s Australian division.
CanWest has agreed with Ten Holdings and Ten Group that if it does determine to sell its majority stake, "it will ensure that any acquirer of those securities will also make an offer on fundamentally equivalent terms to acquire all of Ten Holdings’ and Ten Group’s issued shares (to the extent that they are not owned by CanWest or Ten Holdings)," said a press release.
"Ten Holdings, Ten Group and CanWest have agreed to jointly manage a cooperative process facilitating the opportunity for CanWest, Ten Holdings and other Ten Group shareholders to participate in any sale of their respective interests in Ten Group and Ten Holdings. The parties expect that this current process should be completed by August 31, 2007, although that date may be extended in certain circumstances," it reads.
CanWest also noted it has made no final decision on what it might do. However, it is expected by most observers that a sale will happen.
"If this current process does not result in a disposal of CanWest’s securities in Ten Group by August 31, 2007 (or such later date as the parties may agree), then CanWest’s rights to sell its securities in Ten Group will revert to those that currently exist under the terms of the associated Ten Group’s securities and arrangements that were put in place at the time of Ten Holdings’ initial public share offering in 1998," says the press release, meaning it doesn’t have to find a buyer for the whole thing if it can’t find one by August 31st, ’07.
