Network Ten (TEN) shares fell to a new all time low of 17c on the ASX yesterday afternoon after it became known the Australian Competition and Consumer Commission had delayed its ruling on Foxtel’s proposed acquisition of up to 14.9% stake in the broadcaster.
The Commission discussed the proposal this week, and had been expected to make a decision on Thursday, or release a statement of issues (raised in market testing on the proposal).
But it posted a note on its website yesterday saying the decision had been put back until next Monday, September 14 when it will either announce a decision, or release a statement of issues.
The commission’s public register shows the decision to delay was made on Wednesday, with the "former proposed decision date of 10 September 2015 delayed by ACCC to allow additional time to consider the proposed acquisitions”.
TEN 1Y – Ten finds new all time low as ACCC decision delayed
.png)
The proposed deal between Foxtel and Ten was officially announced on June 15, and the ACCC began its review on June 25. Foxtel is proposing to pay 18 cents a share for its stake in Ten.
The first part of the deal – Ten taking a 25% stake in the MCN ad sales group controlled by Foxtel and Fox Sports – has been carried out, along with the associated merging of the 140 Ten sales staff into MCN.
Ten would also be given the option of taking a 10% stake in Presto, Foxtel and Seven West Media’s joint-venture subscription video on-demand service.
Since the proposal was put forward, Ten’s chief executive Hamish McLennan stepped down unexpectedly from his roles as Chairman and CEO.
That was linked to the board restructuring at Ten, which would have excluded Mr McLennan from a board position because of his close association with News Corp, which controls 50% of Foxtel. Mr McLennan is also chairman of REA Group, 63% owned by News Corp.
