SkyTV to buy outside broadcast operator from Prime

OnSite Broadcasting provides all outside broadcast facilities, such as rugby coverage, for SkyTV. Photo / Sarah Ivey

Pay television operator Sky Network Television is buying outside broadcast operator OnSite Broadcasting (NZ) from Australia's Prime Media Group.

Prime says the sale price is $35 million but once liabilities are taken into account the net amount is $13.5 million. OnSite provides all outside broadcast facilities for SkyTV.

SkyTV will enter a joint venture arrangement with Prime to market OSB New Zealand's services to third-party broadcasters and other customers. The deal allows Prime to earn profits to a maximum of $6.85 million over a period of up to six years.

"The sale and restructure of the OSB New Zealand business is part of a divestment programme that will refocus our business on its core earnings drivers, television and radio," said Prime chief executive Ian Audsley.

SkyTV shares were up 9c at $4.73 after the announcement.

- NZPA