AUSTRALIA: Packer continues move out of media

ames Packer will remain a director of PBL Media, owner of the Nine Network and ACP Magazines, but his days as the country's most prominent media mogul are over.

Publishing & Broadcasting Ltd confirmed yesterday the sale of a further 25 per cent in PBL Media to joint-venture partner CVC Capital Partners for $515 million.

PBL also sold ticketing agency Ticketek to its media offshoot for $210 million.

Mr Packer and PBL chief executive John Alexander will remain on the PBL Media board, but the company will be 75 per cent owned and controlled by private equity firm CVC.

A dispassionate Mr Packer described the move as "part of a broader reallocation of capital within PBL."

In the 18 months since Kerry Packer died, James Packer has raised more than $5 billion selling PBL's media assets, spending most of the proceeds so far on casinos.

PBL no longer controls any of the country's big media companies. Instead it owns a 25 per cent stake in PBL Media, a quarter stake in Foxtel, half of Fox Sports and 27 per cent of job advertisements website Seek.

Those investments will be bundled into a new company, Consolidated Media Holdings, as part of a PBL break-up this year. Another company, Crown, will hold its growing casinos business. The sell-down in PBL Media had been well flagged. But investors were left wondering what PBL would spend its cash on now that talks between pay TV operators Foxtel and Austar had fallen through.

PBL had been expected to use some of the money raised to help fund a Foxtel acquisition of Austar, but the regional pay TV player confirmed on Friday the talks had collapsed.

Some investors said the cash might be used to fund reasonably high dividend payments for Consolidated Media Holdings in a bid to attract investors.

PBL might also invest in other online or new-media businesses or shift the money to its casinos business.

On Thursday PBL announced plans to build a casino on the Las Vegas strip.

CVC's local head, Adrian MacKenzie, said yesterday that PBL Media had a proven management team, indicating that Ian Law would remain chief executive.

Mr Law told staff in a written announcement that he believed "business will continue as usual."

Industry sources said former Nine boss Eddie McGuire, who was appointed by Mr Packer, resigned last week in anticipation of the ownership changes. PBL shares dropped 35¢ to $21.35.

"PBL is now a higher-return, higher-risk proposition," said Atul Lele of White Funds Management.

"If you look down a few years, PBL Gaming is up for a lot of development costs, and people will be wary of any blow-outs," he said.