Seven Group Holdings Limited (SVW) announced that it has reached an agreement with West Australian Newspapers Holdings Limited (WAN), to create Seven West Media (SWM). Seven West Media will be Australia’s largest diversified media business. The proposed transaction would result in a media company with a leading presence in broadcast television, radio, newspaper publishing, magazine publishing and online. Seven West Media will be formed by WAN acquiring 100% of SMG from SGH, for an Enterprise Value of approximately $4.1 billion (the Proposed Transaction). Upon implementation of the Proposed Transaction, SGH will hold a 29.6% stake in SWM and $250 million of SWM Convertible Preference Shares.
SGH Group Chief Executive Mr. Peter Gammell today welcomed the announcement. “A year ago we announced the merger of Seven Network and WesTrac Group to create Seven Group Holdings. This transaction to create SGH has delivered considerable shareholder value,” Mr. Gammell said. “Today represents a logical next step. As a result of the transaction, Seven Group Holdings will be the largest shareholder in Seven West Media which will comprise two iconic Australian media assets, namely: Seven Network and the West Australian.” The Executive Chairman of Seven Group Holdings, Mr. Kerry Stokes, said: “The media landscape is evolving rapidly. Today’s announcement provides a significant opportunity for shareholders to participate in this expanding sector.
Under the terms of the Proposed Transaction, SGH, which owns 45% of SMG, will initially buy out the interest of its joint venture partner, KKR, as well as the interests of management and mezzanine investors. WAN will subsequently acquire 100% of SMG from SGH, for an Enterprise Value of approximately $4.1 billion.
http://www.traderdealer.com.au/Fundamentals/svw
http://www.traderdealer.com.au/Fundamentals/wan
Tags: acquisition, Asset Sale, Entertainment, Seven Group Holdings, SGH, Takeover, WAN, West Australian News
