Initiation of Coverage: Nine Entertainment Is on Track to Deliver on Prospectus Forecasts

We initiate coverage on Nine Entertainment Company, or Nine, the owners and operators of the Nine Network, Nine Events and Nine Digital, with a fair value estimate of AUD 2.10. Nine was listed in December 2013 from a partial sell-down by private equity holders Oaktree and Apollo. These parties have entered into voluntary escrow agreements, which restrict their ability to sell down further capital until the release of Nine's full-year fiscal 2014 result. Oaktree holds 14.3% and Apollo 22.0%. We don't expect them to be long-term holders of Nine equity.