Southern Cross Media Group (ASX:SXL) signed an agreement to sell its television licenses in Queensland, southern New South Wales, and Victoria to Network 10, following a strategic review process, according to a Tuesday filing with the Australian bourse.

Under the terms, the media company will receive a share of the profit from the licenses for five years post-sale, with aggregate gross consideration expected to range from AU$15 million to AU$20 million, depending on advertising market conditions.

The company will retain its local salesforce in these markets and continue to provide local advertising sales representation services to Network 10 during the participation period, the filing said.

The deal is expected to be completed by the end of February 2025, subject to final transaction documentation and customary conditions, including foreign investment approval. Proceeds will be used to reduce the company's net debt.

The company is in negotiations regarding the sale of additional television assets in other regions, including Tasmania and Remote Central and Eastern Australia.

Shares of the media company rose almost 4% in recent Tuesday trade.

Price (AUD): $0.58, Change: $+0.02, Percent Change: +3.57%