Australian investment firm Consolidated Media Holdings (CMH) has insisted its 25% stake in local pay-TV firm Foxtel is not for sale, in response to recent media speculation.
However, the group also revealed on 4 May that it is being advised by UBS…
Australian investment firm Consolidated Media Holdings (CMH) has insisted its 25% stake in local pay-TV firm Foxtel is not for sale, in response to recent media speculation.
However, the group also revealed on 4 May that it is being advised by UBS after holding “very preliminary” discussions regarding an undefined control proposal.
“No control proposal or other form of offer has been made to CMH and CMH can give no assurance that a control proposal will be made,” added the company in a brief statement.
Reported speculation suggests Australian businessman James Packer is looking to sell his 50.05% stake in CMH, which has been valued at around A$1bn, to use the proceeds in expanding his gambling empire.
Industry spectators have pointed to US media giant News Corp, which also owns a 25% stake in Foxtel, as being the most likely suitor for the CMH stake. Local media group Seven West Media could also be in the frame for CMH, according to reports.
Meanwhile, David Thodey, CEO of Australian telecoms incumbent Telstra, which holds the remaining 50% stake in Foxtel, told journalists in March that he was interested in acquiring CMH’s shares in the pay-TV firm.
“Yes, we would consider it,” he said.
However, Thodey also acknowledged the regulatory scrutiny that Telstra would likely face under such a move.
His comments came during Foxtel’s long-running battle with regulators to acquire regional satellite and cable TV operator Austar. The transaction finally received court approval on 13 April, after strict conditions were placed on the deal, largely because of Telstra’s existing dominance in the Australian market.
Neither party was able to comment.
