Publishing and Broadcasting Limited (PBL) was today given approval by Australia’s Federal Court for the demerging of its gaming and media assets. Crown Limited will now be able to buy all PBL shares and separate the media assets into a separate company, Consolidated Media Holdings (CMH). All PBL gaming assets will be held by Crown and the two companies will be separately listed on the Australian Stock Exchange (ASX).

Last week the shareholders of PBL overwhelmingly approved the plan to divide the company into separate entities – 99.95% of shares were voted in favour. The Federal Court Orders, approving the PBL Scheme and the Demerger Scheme, will be lodged with the Australian Securities and Investments Commission on Friday. PBL will make a further announcement on that day to provide a timetable for trading Crown shares and CMH shares on ASX.

PBL executive chairman James Packer says he believes shareholders will gain greater benefits and investment choice from the demerger. He also thinks that it will result in higher share prices in the future. He said, "Each company has the management focus, balance sheet strength and appropriate capital structure to drive significant growth in the years ahead."

Earlier this year PBL sold around 75% of its media assets to private equity firm CVC Asia Pacific, creating a PBL Media joint venture. Most of the proceeds will go to further Crown expansion in global gaming markets. CMH will own 25% of PBL Media, 25% of Foxtel pay TV, 50% of Fox Sports and a stake in other media interests, including 27% of job search website Seek. A$2 billion will be returned to shareholders along with one share in each of the new companies. (E-11.28.07)

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