Sydney-based Sports Entertainment Group has confirmed its plans to purchase the Perth Wildcats from Jack Bendat, who has owned the basketball team since 2007.
In an ASX announcement on Tuesday, Sports Entertainment Group said it was in advanced discussions with the club in regard to a potential acquisition, which remains subject to further negotiation.
SEG, which changed its name from Crocmedia at the end of last year, said it would fund the deal using existing cash reserves and available debt facilities. Its cash on hand was $10.3 million, as at December 31.
The group expects the deal will deliver a positive contribution to future earnings and provide significant value to its operations, in particular in Western Australia where SEG has made a number of investments in the past 12 months.
That includes the acquisition of radio channel 621AM Spirit Bunbury (rebranded SEN Spirit) and the launch of SEN Stadium – a live commentary listening service for sports matches played at Optus Stadium.
SEG said it had a strong connection with the Perth community.
The group is chaired by Perth-based Craig Coleman, who is also the co-founder of investment manager Viburnum and a director of Basketball WA.
Also on Tuesday, SEG announced a full-year earnings guidance of between $8.5 million and $9.5 million. The group earned $5.8 million during the first half of FY21.
Shares in SEG closed down 4 per cent on Tuesday to trade at 23 cents.