Nine Entertainment Co.’s owners, including Apollo Global Management LLC (APO:US) and Oaktree Capital Group LLC (OAK:US), will seek a valuation including debt of about A$2.6 billion ($2.5 billion) in the company’s initial public offering, according to a person with knowledge of the matter.
The IPO will value the media company at about 8.5 times its forecast earnings before interest, tax, depreciation and amortization of A$305 million, said the person, who asked not to be identified as the information is private. The shares will be marketed at A$2.05 to A$2.30 apiece, the person said.
Apollo and Oaktree will both retain a stake in Australia’s second-largest broadcaster after the deal, the person said. The funds took control of Nine last year in a debt-for-equity swap that saw previous owner CVC Capital Partners Ltd. lose the majority of its investment.
Nine, which also owns a ticketing business, last month bought its affiliate station in Western Australia state and the 50 percent of digital venture Mi9 that it didn’t already own from Microsoft Corp. earlier this month.
Under the restructuring plan agreed last October, about 60 percent of a A$5.75 billion debt and equity investment by CVC was wiped out. Senior lenders including Apollo and Oaktree received A$573 million in cash and a 95.5 percent stake in Nine, according to Federal Court documents in December. London-based CVC had bought the broadcaster from billionaire James Packer’s Publishing & Broadcasting Ltd.
The prospectus for the IPO will be published next week, and the company may start trading on the Australian Securities Exchange in early December, the person said. UBS AG (UBSN), Morgan Stanley (MS:US) and Macquarie Group Ltd. are among banks leading the share sale, according to the person.
Victoria Buchan, a Sydney-based spokeswoman for Nine, declined to comment. The Australian reported the terms of the deal earlier today.
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