Ten Network Holdings shares have gone into a trading halt as the struggling free-to-air broadcaster prepares to raise new funds.
The trading halt was requested by the company ‘‘pending an announcement by Ten in relation to a proposed capital raising and other initiatives’’, it said in a statement this morning.
According to the AFR, the new shares are to be sold at about 20 cents, a 40 per cent discount to last night's closing price of 32.5 cents.
The board, including chairman Lachlan Murdoch, James Packer, Gina Rinehart and Hungry Jack's owner Jack Cowin are expected to support the raising.
Ten made a full year loss of $12.9 million in fiscal 2012, with revenue down 13.7 per cent as advertisers deserted the network in response to a number of television flops.
When Ten's annual results were released in October showing TV earnings had dived 46.5 per cent, chief executive James Warburton, said the broadcaster would not need to raise fresh equity. "We are within our covenants," Mr Warburton said at the time.
In June Ten asked its major shareholders, including its cluster of moguls, to put their hands in their pockets and help the No. 3 TV network to raise $200 million to pay down debt and give it the "flexibility" it needed to deal with an "uncertain" ad market.
Mr Packer, Ms Rinehart and Mr Murdoch all took up their entitlement of shares, which were offered at a 20 per cent discount to the then price of 64 cents.
Between them the big players own 43 per cent of Ten's shares.
The broadcaster has struggled in the ratings in 2012, with shows such as Everybody Dance Now - hosted by Mr Murdoch’s wife Sarah Murdoch - The Shire and I Will Survive failing to fire.
Ten holds its annual general meeting in Sydney tomorrow morning. It could be a fiery affair for Mr Warburton and Mr Murdoch.
With AAP
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