‘Spend it wisely!’: Network Ten mails Bruce McWilliam $1 coin after legal stoush

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This was published 5 years ago

‘Spend it wisely!’: Network Ten mails Bruce McWilliam $1 coin after legal stoush

By Jennifer Duke

Seven West Media commercial director Bruce McWilliam will find an early Christmas gift of $1 in his letterbox this week after Network Ten returned the gold coin to the media executive following a successful appeal against free-to-air rivals Seven and Nine Entertainment Co.

The three commercial networks have been in court since February arguing about the sale of Ten’s share of a jointly-owned transmission tower business called TX Australia (TXA).

Seven West Media commercial director Bruce McWilliam will receive his $1 coin back from Network Ten.

Seven West Media commercial director Bruce McWilliam will receive his $1 coin back from Network Ten.Credit: Daniel Munoz

When Ten went into administration last year it triggered a contractual clause that gave Nine (the owner of this website) and Seven the right to buy the network’s 33.3 per cent stake in the business. US-based entertainment giant CBS bought the beleaguered network shortly after and took it out of administration.

Since then, the broadcasters have disagreed on how much Nine and Seven should pay for the remaining third of the transmission company, which provides crucial broadcasting services across Sydney, Melbourne, Brisbane, Perth and Adelaide.

A report produced by PricewaterhouseCoopers suggested various valuations, including one estimating the worth of Ten’s share of TXA as $1 and another at $40 million.

Affixed with sticky tape is a $1.00 coin. Spend it wisely! All the best for the end of year festivities.

Ten's letter to Bruce McWilliam

On this basis, Mr McWilliam sent a letter to TXA executive chairman Paul Mullen in February outlining Seven’s plans to buy half of Ten’s shares for 50 cents. The Seven executive attached a $1 coin with tape to the letter.

"Seven tenders the enclosed amount of $1.00 as payment for its relevant proportion of Ten's shares and, in the event that Nine does not exercise its pre-emptive right, Ten's remaining shares,” the letter said.

“If Nine agrees to purchase its relevant proportion of Ten's shares, please refund the $0.50."

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The networks went to court shortly after, with Ten arguing the rival networks should not be able to buy its stake in the business but the Supreme Court of NSW ruled the shares should be transferred over for $1.

The CBS-owned network appealed the decision in court and had the outcome overturned on Friday, with a new valuation yet to take place to determine the value. It’s understood Seven still intends to buy Ten’s interest in TXA in a move that would force the broadcaster to pay for its transmission services in future.

Ten general counsel Stuart Thomas quickly wrote to Mr McWilliam to return his dollar coin.

"I refer to your letter dated 6 February 2018 under which Seven attempts to acquire both 50 per cent of Ten's shares in TXA for 50 cents as well as Nine's 50 per cent proportion of Ten's shares in TXA for a further 50 cents,” Mr Thomas wrote in the letter, dated Sunday.

“You will recall that a $1.00 coin was provided as Seven's tender of the purchase price.

“Given the judgment of the Court of Appeal on Friday dismissing Seven's attempts to divest Ten of its TXA shareholding, it seems only fair that Seven should receive a full return of its $1.00,” he said.

“Affixed with sticky tape is a $1.00 coin. Spend it wisely! All the best for the end of year festivities.”

Mailing a letter within Australia costs a minimum of $1.

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