The Seven Network formally floated its $ A600 million ($ 402 million) stock offering Thursday and is expected to be listed on the Australian Stock Exchange within a month.
Rupert Murdoch’s News Corp. and Australian Telecom have already picked up a total of 25%, with News naming senior magazine exec Dulcie Boling as its rep on the board of directors.
A condition of Murdoch’s involvement was Seven getting greater access to Fox product.
Seven’s prospectus calls for the issue of 300 million $ A2 shares.
The bulk of the funds raised will go to pay off the $ 320 million still owed to the consortium of 10 banks that took control when the Skase empire collapsed in 1989.
The banks still hold $ 315 million in non-recourse notes, and it is expected that about half that will be retired from the offering.
Additionally, to attract overseas investment, there is a provision for the issue of 39 million $ A2 debentures in lieu of shares.
Chairman Ivan Deveson predicted that earnings before interest and tax to June 1994 would beabout $ 57 million, up from the $ 37.5 million posted for 1992-93.
Total revenue this year is forecast to be $ 372 million, down $ 3 million from fiscal 1992-93 due to costs related to Olympics coverage. This year, Seven will pay a 6 cents final dividend, Deveson said.