Reuters: Private Equity: CVC to kick off sale of Australian ticket agency-source

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CVC to kick off sale of Australian ticket agency-source Apr 17th 2012, 06:27 MELBOURNE, April 17 | Tue Apr 17, 2012 2:27am EDT MELBOURNE, April 17 (Reuters) - Private equity firm CVC , facing heavy potential losses on its Australian TV network Nine Entertainment, plans to kick off the sale of the group's ticket agency this week when it sends information to suitors, a source said on Tuesday. The Events division of Nine, which includes Australia's largest sports and entertainment ticketing agency Ticketek, has drawn "healthy interest" from domestic and global private equity firms and from other media companies, the source told Reuters. The person declined to be named because the matter is confidential. The division, which includes the Allphones Arena at Sydney's Olympic Park, could be worth A$500-A$600 million ($517-$620 million), according to media reports. CVC, a London-based buyout firm, is looking to sell assets to help reduce debt and keep at bay hedge funds that want to wrest control of Nine. The sale process is expected to be well progressed by mid-year, the person added. CVC and sale advisers UBS declined to comment. Nine has A$2.7 billion ($2.8 billion) of senior debt due in February 2013. CVC is looking at options including refinancing, bringing in new investors, and asset sales. CVC Capital Partners bought Nine for A$5.3 billion in cash and debt from Australian media baron James Packer between 2006 to 2008, at the height of the equities bull market, but the value of media assets have slumped with advertising revenues. Hedge funds have been accumulating stakes in Nine's debt for over a year, and are hoping to force a debt-for-equity swap that would give them control of the business. Link this Share this Digg this Email Reprints

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