Network Ten

CBS’ surprise bid steals the show: Latest announcement on ownership of the tormented Network Ten has revealed that wholly owned entities of CBS Corporation (US media and entertainment giant CBS) will be acquiring Network Ten, as confirmed by receivers and managers and voluntary administrators of Ten. The US giant outdid Lachlan Murdoch and Bruce Gordon in a surprise bid, and was said to have picked up an information memorandum on Ten, as one of Ten’s largest creditors after making a $795.5 million claim post the company went into administration. CBS had earlier agreed to a draft deal for lowering the cost of its output contact in return for equity. Acquisition is expected to be effected by way of a refinance of existing debt arrangements and a Deed of Company Arrangement (DOCA) that will be put to creditors at the second creditors meeting.CBS will provide financial support to ensure continuity of operations in the interim. It has been time and again highlighted that Network Ten has played a significant role in Australia’s media landscape over many decades, and the sale of the business to CBS is set to allow the iconic broadcaster to move into a new chapter on a strong and stable footing.

Mesoblast Ltd

Fully underwritten capital raising to complete/advance near term objectives: Mesoblast Ltd (ASX: MSB) was granted a trading halt by the ASX towards the end of last week while details of a fully underwritten capital raising were pending. The group later announced about the fully underwritten capital raising of approximately A$50.7 million to all existing eligible shareholders. Particularly, the structure of the offer is based on a fully underwritten 1 for 12 pro-rata accelerated non-renounceable entitlement offer of new fully paid ordinary shares in Mesoblast to existing eligible shareholders at an offer price of A$1.40 per new share (representing a discount of 13% to Mesoblast’s last close price of A$1.61 on August 24, 2017); and will include an accelerated institutional entitlement offer and a retail entitlement offer. It is noteworthy that Bell Potter Securities Limited has been the entity fully underwriting the offer. The group aims to use the proceeds of the offer to fund the costs of on-going Tier 1 clinical programs; support commercial manufacturing requirements for Tier 1 product candidates, and for general and administrative expenses, working capital and other general corporate purposes. MSB has been known to leverage its proprietary technology platform based on mesenchymal lineage adult stem cells and the above move is in continuation of its equity raising efforts and will help enhance the balance sheet flexibility for driving R&D programs.
 

Offer Details (Source: Company Reports)

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