QMS Media Limited has finalised terms for the merger of its New Zealand out-of-home, digital media and production business (QMS NZ) with MediaWorks, New Zealand’s leading independent radio, TV and digital business.
The merger on completion will establish the newly combined QMS and MediaWorks as the largest multi-media advertising group in the country.
In late November, QMS Media Limited has entered into a Heads of Agreement (HOA) for a proposed merger of its New Zealand business (QMS NZ) with MediaWorks.
QMS will merge its NZ out-of-home, digital media and production businesses into MediaWorks and in return will receive a 40 per cent shareholding in the expanded MediaWorks business.
QMS will receive a capital return of approximately A$35m (subject to the finalisation of financing terms), which will provide increased financial flexibility for the QMS Media Limited group.
QMS Media Limited chairman Wayne Stevenson said: “For QMS, this merger reinforces our prudent management of assets and realises value for shareholders from our investments in New Zealand.
“The transaction will allow us to continue to create further opportunities to unlock value for shareholders and further accelerate our growth in a consolidating environment.”
QMS NZ’s existing leadership will be strengthened by the out-of-home advertising industry experience of MediaWorks’ CEO Michael Anderson and Chairman Jack Matthews, both of whom have significant knowledge and expertise across radio and TV as well as out-of-home.
Michael Anderson will continue as CEO of the combined group.
With this respected and proven leadership at the helm, Mediaworks will leverage its significant asset footprint, extensive local relationships and brand strength to build on its market position and ensure future revenue growth.
The newly merged group will deliver compelling value for advertisers via an expanded sales network and complementary cross-platform revenue synergies.
