CVC backs PBL Media in AUS$5.5bn deal

The transaction will involve the transfer to PBL Media of PBL's existing media properties - the Nine Network, ACP Magazines and several of its interests in on-line ventures, including its 50 per cent interest in Microsoft ninemsn and 41 per cent shareholding in carsales.com.au. PBL and CVC will each hold a 50 per cent stake. The firm said that PBL Media will be operated and run by existing PBL management. The transaction will be funded by a mixture of debt and equity.

Adrian MacKenzie, a CVC partner, said, 'Opportunities to invest in quality, market leading assets such as PBL Media are rare. There is terrific chemistry between PBL and CVC. I am confident that this will be a great success.'

James Packer, executive chairman of PBL, added, 'PBL has a history of working well with co-investors. We see the establishment of PBL Media as an opportunity to work with a great international player such as CVC, to drive growth in our media businesses and to gain access to new sources of capital and expertise. We are long-term holders of these media assets.'

'This transaction enables PBL Media to take advantage of opportunities in the media sector both in Australia and overseas,' noted John Alexander, PBL's CEO.

CVC is a buy-out group founded in 1981 that has raised $18bn (€16.8bn) in Europe and Asia - with $15.5bn raised in Europe and $2.7bn in Asia. CVC's current European portfolio of 38 companies has a combined transaction size of €32.2bn.

CVC Asia Pacific was formed in 1999 to focus on buy-out opportunities in the Asia Pacific Region. The firm currently advises on private equity funds totalling US$2.7bn, managed from offices in Hong Kong, Seoul, Sydney and Tokyo. CVC Asia Pacific has acquired 17 companies in the region for a total consideration of US$4.3bn.

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