Seven West Media (SWM) has today announced it will merge with Prime Media Group through a 100 per cent scrip-based Prime scheme of arrangement and sell its Western Australian radio assets (Redwave) to Southern Cross Media for $28 million.
SWM and Prime have entered into a Scheme Implementation Deed under which it is proposed that SWM will acquire all Prime’s issued shares through a Scheme of Arrangement under which Prime shareholders will receive 0.4582 SWM shares for each Prime share that they hold.
Following completion of the proposed transaction, existing SWM shareholders will own 90 per cent of the combined entity, with Prime shareholders holding the remaining 10 per cent.
The combined business will be led by James Warburton, SWM managing director and CEO, and will be chaired by Kerry Stokes, chairman of SWM.
Commenting on the merger plan, Stokes said: “SWM and Prime have had a longstanding relationship and are key partners in the industry. The combined group will cement our position as Australia’s leading content provider and presents excellent value to shareholders.”
Prime’s chairman John Hartigan added: “The Prime Board has carefully considered the proposed transaction and believes it is in the best interests of Prime shareholders. It represents an exciting opportunity for Prime shareholders to maintain their exposure to the broadcast television industry in a stronger and larger combined group that is more relevant and resilient.”
Warburton said: “The Proposed Transaction is a game changer for advertisers and media buyers and cements SWM’s position as the superior advertising offering. Overnight, SWM will be the leading wholly-owned commercial premium network that amasses a monthly Australian audience reach of 18 million people.”