16 Dec 2011

Private equity group buys into MediaWorks

12:45 pm on 16 December 2011

TPG, one of the world's largest private equity groups, has bought a slice of senior debt in TV3's owner MediaWorks from the Commonwealth Bank of Australia, making it MediaWorks' largest lender.

It is understood TPG plans to inject new capital into MediaWorks as well as expertise.

The Australian Financial Review reports that the debt, part of a $388 million senior loan, had a face value of $70 million.

TPG is not saying how much it paid for it but the AFR previously reported it was likely to be around 50 cents in the dollar range.

TPG, previously known as Texas Pacific Group, already has interests in New Zealand including Healthscope, a private hospital and pathology company, and Animates, a petstore chain.

In the past it has attempted takeovers of SkyCity and Carter Holt Harvey.

TPG already owns a US TV company, radio stations and the talent management company Creative Artists.