Southern Cross Media Group (SCA) has agreed to sell its television licence in the three aggregated markets - Queensland, southern NSW and Victoria - to Network 10.
The terms of sale provide that SCA will be entitled to receive a share of the profit of the 3-Agg Markets licences for five years after the completion of the sale.
During the Participation Period, SCA expects an aggregate gross consideration to be received by SCA to be in the range of A$15 million to $20 million based on current and forecast advertising market conditions. The net value of these proceeds is expected to be between $10 million and $15 million.
This comes after SCA announced a strategic review of its non-core regional television assets in August.
The agreement with Network 10 marks the first outcome of that strategic review and the two media groups are aiming to complete the acquisition by the end of February 2025.
They were in active negotiations with several parties and remain in discussions regarding the sale of its television assets in Tasmania, Spencer Gulf/Broken Hill, Darwin, Remote Central and Eastern Australia.
SCA plans to apply the proceeds of the sale of its television assets towards reducing its net debt.