CVC Boosts Investment in Australia's PBL as Packer Exits

17 December 2008

SYDNEY: CVC Asia Pacific has invested A$335 million ($224m; €164m; £147m) in Australian media conglomerate PBL Media as part of a recapitalization scheme, all but severing the link between the organization and James Packer (pictured), son of its founder, Kerry Packer.

Private equity group CVC has moved closer to full ownership of the broadcast and publishing company, in which it had already invested around A$1.5 billion to acquire a 75% stake.

As a result of the new investment, James Packer's Consolidated Media Holdings, which had previously held a 25% share, saw its stock holding diminish in size to less than 1%. 

Packer had previously stated he had no interest in injecting further funds into the A$445 million recapitalization program, which has now been approved by PBL's creditors. 

The package also saw "wholesale changes" regarding the financial covenants tied to PBL Media's overall debt, which now stands at A$3.8 billion.

Says CVC Asia Pacific managing partner Adrian Mackenzie: "PBL Media has some of the best media brands in Australia and the management team has made a number of significant operational changes since we took ownership of the business."

Data sourced from Wall Street Journal Online; additional content by WARC staff