Fairfax sells Southern Star TV unit to Endemol

Tuesday 20th January 2009

Fairfax Media, Australia's second-largest newspaper group, sold its Southern Star TV production and distribution business to Endemol for A$75 million and will use the funds to repay debt and strengthen its balance sheet.

Combined with the recent sale of Carnival Film and Television Ltd to NBC Universal, Fairfax Media will receive total net cash proceeds of about $120 million, it said in a statement to the ASX. The sale agreements allow for additional earn-out payments over three years provided the companies meet performance targets.

Fairfax Media acquired the Southern Star group, including Carnival, for $150 million. According to its Website, Southern Star is Australia's largest independent TV production companies, with programmes including wildlife show Meerkat Manor, the Big Brother reality TV show and Gladiators.

Endemol is owned by a group consisting of Goldman Sachs Capital Partners, Mediaset Group and Cyrte Group, according to the Netherlands-based production company. Shares of Fairfax were last unchanged at A$1.48 on the ASX.

By Jonathan Underhill

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