Broadcaster Ten Network Holdings has agreed to sell its outdoor advertising business, Eye Corp, to Outdoor Media Operations (OMO) for up to $145 million.

OMO owns oOh!media, an Australian outdoor advertising specialist.

OMO is controlled by Champ Private Equity.

Ten chief executive James Warburton said Ten would use the proceeds to pay down debt.

“It will make our balance sheet stronger by further reducing debt and will give us additional opportunity to invest in the creative renewal of Ten’s television content,” he said.

Ten said the sale would include Eye Corp’s businesses in Australia, New Zealand, the United States, the United Kingdom and Indonesia.

Ten said the deal values Eye Corp – excluding retained Australian onerous contracts – at up to $145 million.

That figure comprises gross cash proceeds of up to $120 million upon completion of the deal and a $25 million payment three years after completion.

The final cash proceeds will be subject to adjustments in respect of the sale proceeds of the US and UK operations and for agreed working capital levels, capital expenditure obligations, and transaction costs.

Ten will retain some of Eye Corp’s Australian onerous contracts, but the operation of the relevant assets will be subcontracted to OMO.

OMO, with the help of Ten, intends to sell Eye Corp’s US and UK operations to other parties.

If either or both of the businesses are not sold within an agreed time, Ten may choose or be required to reacquire them from OMO for a nominal consideration.

Shares in Ten were steady at 50.5 cents at 1130 AEST Friday.