Nine Entertainment (ASX:NEC) to sell NZ publishing business Stuff in $1 management buyout

Company News

by Anna Napoli

Nine Entertainment (ASX:NEC) has entered into a share sale agreement with respect to its New Zealand business Stuff, as a management buy-out by its current CEO, Sinead Boucher.

Following the sale, Nine Entertainment will received $NZ1 (93¢) however it will retain ownership of the Petone print plant site in Wellington which will be leased back to Stuff.

In addition, as a result of the successful completion of the Stuff Fibre sale on 20 May 2020, Nine will receive 25 per cent of those proceeds before completion of the Stuff sale, plus up to a further 75 per cent over the subsequent 36 months, depending on the Stuff business’ ability to raise funding.

Nine expects an associated specific item cost at its FY20 result of between $40 million to $45 million.

The sale of Stuff is expected to complete by 31 May 2020.

Shares in Nine Entertainment (ASX:NEC) are trading 3.7 per cent higher at $1.42.