Seven buys SCA TV licences after ADH deal falls through

Seven West Media has entered a binding agreement to buy Southern Cross Austereo’s regional TV licenses after a previously announced deal with Australian Digital Holdings fell through.

Seven and SCA both made ASX announcements on the binding sale Tuesday morning. Seven will pay $3.75 million upfront for the licenses in Tasmania, Spencer Gulf, Broken Hill, Mt Isa, Darwin, and Remote, Central and Eastern Australia

“The final conditions to complete this transaction were not satisfied and all further negotiations and discussions with ADH have now ceased,” SCA said in their announcement.

The $3.75m matches the cash price ADH had agreed to pay in February, however ADH also had a top-up $3.6m in fees for ongoing services, for an announced total deal value of $6.35m. At the time, ADH said to Mumbrella that the prices was “indicative of the fact that there’s a lot of work to do.”