PBL, West Australia Newspapers pay A$347m for Hoyts

Australian billionaire Kerry Packer's Publishing and Broadcasting Ltd and West Australian Newspapers (WAN) said on Tuesday they agreed to pay a combined A$347 million ($374.73 million) for cinema firm Hoyts Group.

Hoyts Group, owned by Consolidated Press Holdings, operates 377 cinema screens in Australia and New Zealand, a film distribution business, and the Val Morgan unit, which sells advertising trailers on most Australian and New Zealand movie screens.

WAN's 50-per cent stake, worth A$173.5 million, will be fully funded by debt, while PBL will issue 11.137 million shares to CPH at A$15.58, the average one-month price to December 8, the companies said in a statement to the Australian Stock Exchange.

"Hoyts is a great business, which we believe will continue to grow under the new ownership structure," said James Packer, executive chairman of PBL. James is the son of Australia's richest man, Kerry Packer.

Shares in PBL closed up 0.4 per cent at A$16.12, while WAN's shares ended the day down 0.7 per cent at A$8.66.

- REUTERS