Grant Broadcasters sale completed
HT&E Limited has finalised its acquisition of Grant Broadcasters.
The deal was completed for “consideration of $307.5 million on a cash and debt free basis,” according to the company’s Australian stock exchange notification.
The transaction signals a significant digital audio expansion for HT&E, “through the unlocking of new growth markets and audiences” and consolidates HT&E’s position as a leading audio company with its expanded ARN radio network and iHeartRadio streaming and podcast platform.
HT&E acquired 46 of Grant Broadcasters’ radio and digital operations across the country in the deal, announced on 12 November last year.
When combined with ARN’s existing 13 stations, ARN now owns 58 stations across 33 markets plus 46 DAB+ stations. Due to ACMA licence area ownership regulations, ARN will sell its Brisbane Classic Hits station 4KQ.
The acquisition price represents about 8.7 times EBITDA and about 10.3 earnings (EBIT) for the last 12 months to June 2021. Returns to share holders are expected to increase as a result of the acquisition.
HT&E is funding the acquisition through its existing cash reserves, financing facilities and the issuance of HT&E shares. It recently sold its Soprano and Ooh Media stake to bolster its war chest for this deal.
35.9 million HT&E shares have been issued to Grant Broadcasters, giving Grant Broadcasters a shareholding of 11.55% in HT&E.
Grant Broadcasters has nominated one representative, Alison Cameron (current CEO, Grant Broadcasters), to join the HT&E Board. Her appointment begins today. She will step down from her position as Grant Broadcasters CEO to comply with media ownership rules.