Doubt cast over Ten’s sale of Eye Corp

Ten’s proposed sale of out of home ad company Eye Corp has hit the rocks, following a termination notice from the prospective buyer Outdoor Media Operations.

Ten came to an agreement with OMO to sell Eye Corp for $145m in July, having put the business up for sale in March.

A statement from Ten posted on the ASX reads:

Ten Network Holdings (“TEN”) announces that it has today received formal notice from Outdoor Media Operations Pty Limited (“OMO”), a company owned by CHAMP III Funds, purporting to terminate the Share Purchase Agreement relating to the sale of Eye Corp Pty Limited. Details of the Share Purchase Agreement were announced to the market on 20 July 2012.

While TEN has reserved its legal position regarding the purported termination, TEN and OMO remain in discussions with the aim of agreeing amended sale terms.

News of Ten’s sale of Eye Corp earlier this year came on the heals of APN’s sale of half of APN Outdoor to Quadrant Private Equity, which followed the sale of a portion of oOh Media.

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