Fairfax “welcomes” Southern Star TV deal

FAIRFAX Media has sold its Southern Star television subsidiary for A$75 million to Dutch production company Endemol, it said in a statement.

Fairfax Chairman Ron Walker said: “This is a welcome transaction in a difficult market. The proceeds will be used to pay down debt and strengthen our balance sheet.”

The publisher will receive extra payments based on the performance of Southern Star.

The sale, which is expected to be completed in the first quarter of 2009, follows Fairfax’s offloading of Carnival Film and Television Ltd to NBC Universal last year, netting the company around A$120 million in cash proceeds.

Fairfax acquired Southern Star, including Carnival, for A$150 million in 2007.

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