Macquarie Media Management LimitedA Member of the Macquarie...

Macquarie Media Management Limited
A Member of the Macquarie Group of Companies
ABN 16 115 524 019
AFS Licence No. 292297
Macquarie Media Holdings Limited
ABN 91 116 024 536
Macquarie Media International Limited
EC 37694, ARBN 118 577 423
No. 1 Martin Place
SYDNEY NSW 2000
GPO Box 4294
SYDNEY NSW 1164
AUSTRALIA
Telephone +61 2 8232 9440
Facsimile +61 2 8232 4713
Internet www.macquarie.com/mmg
None of the entities noted in this document is an authorised deposit-taking institution for the purposes of the Banking Act
1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of
Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of
the obligations of these entities.
19 January 2009
ASX RELEASE / MEDIA RELEASE
Macquarie Media Group TM1 – Update Regarding Darwin Digital Television and
Tasmanian Digital Television Licences
Macquarie Media Group (MMG) welcomes the decision of the Full Court of the Federal Court
of Australia on 12 January 2009, unanimously upholding an appeal by MMG and making
declarations to the effect that MMG acquiring control of two digital television joint venture
licensees in Darwin and Tasmania, Darwin Digital Television Pty Ltd (DDT) and Tasmanian
Digital Television Pty Ltd (TDT), as part of the acquisition of Southern Cross Broadcasting
(Southern Cross) did not breach the Broadcasting Services Act (the Act). MMG was awarded
costs by the Full Court.
Prior to MMG's acquisition of Southern Cross in 2007, the Australian Communications and
Media Authority (ACMA) had determined that MMG being in a position to exercise
control of the joint venture interests would breach the Act. Notwithstanding its view that in fact
such acquisitions may not breach the Act, MMG sought and obtained prior approvals from
ACMA for the breaches that ACMA said would occur. The approvals expire on 19 January
2009. MMG also executed binding enforceable undertakings to divest control of DDT and TDT
by 19 January 2009. Following the acquisition, MMG sought declarations from the Federal
Court that the acquisition of DDT and TDT did not in fact breach the Act, and this is the
decision that the Full Federal Court reached on appeal.
Following the Federal Court’s decision, MMG is pleased to note the announcement today by
ACMA that it has consented to the withdrawal of the enforceable undertakings.
ACMA has advised MMG that while it has consented to the withdrawal of the undertakings, at
this point in time it is not in a position to determine whether it will challenge or seek
clarification of the decision of the Full Federal Court.
Pending confirmation of whether ACMA will challenge or seek clarification of the decision of
the Full Federal Court, MMG will therefore divest control of the two digital licences to ensure
that MMG would not breach the Act in the event that such a challenge or clarification was
successful. Accordingly, 35.1% of TDT is to be sold to WIN Television and 50% of DDT is to
be sold to Prime Television. MMG will retain a 14.9% interest in TDT and is to acquire a 50%
interest in Mildura Digital Television. Pleasingly, MMG has reached agreement with both WIN
Television and Prime Television under which the purchasers have agreed that it may unwind
these divestments in the event that certain conditions are satisfied including if ACMA confirms
1 Trade mark of Macquarie Group Limited
Macquarie Media Management Limited 2
A Member of the Macquarie Group of Companies
ABN 16 115 524 019
AFS Licence No. 292297
Macquarie Media Holdings Limited
ABN 91 116 024 536
Macquarie Media International Limited
EC 37694, ARBN 118 577 423
WS: iManage_ISF: 1596726: v10
that it will not challenge the decision of the Full Federal Court or any challenge is
unsuccessful.
MMG's 100% ownership of Southern Cross Tasmania and Southern Cross Darwin, MMG's
long standing analogue and digital services, remains unaffected by these changes and will be
unaffected should the sales of TDT and DDT subsequently be unwound.
MMG believes that reverting to its original ownership interest in both DDT and TDT would be
in the best interests of the viewers of DDT and TDT, our advertisers, our staff and our
partners in each of those licences.
For further information, please contact:
Mark Dorney
Karen Halbert
Chief Executive Officer Public Affairs
Tel: 02 8232 8059 Tel: 02 8232 6755
Email: [email protected] Mob: 0412 119 389
Email: [email protected]