Seven West (ASX:SWM) and Prime to merge

Seven West (ASX:SWM) and Prime to merge

 

Seven West Media (ASX:SWM) has announced plans to merge with regional affiliate Prime Media and to sell Western Australia radio business Red Wave to Southern Cross Austereo.

The deal is an all scrip offer to be implemented by way of a scheme of arrangement under which it is proposed that SWM will acquire all of Prime’s issued shares by way of a scheme of arrangement.

Prime shareholders will receive 0.4582 Seven West Media shares for each Prime share they hold.

The Prime board has unanimously recommended the merger in the absence of a superior proposal.

Seven West Media says the deal allows Prime shareholders to maintain exposure to the broadcast TV industry in a larger and more relevant national platform. Merged group ownership will be split between SWM and Prime shareholders 90 per cent and 10 per cent respectively.

The deal is subject to certain regulatory approvals including ACMA and the ACCC as well as Prime shareholder approval and Court approval of the Scheme.

Seven West has also announced plans to sell Western Australia radio business Red Wave to Southern Cross Austereo for cash consideration of $28 million representing an FY19 Enterprise Value/EBITDA earnings multiple of 8 times.

Shares in Seven West Media (ASX:SWM) closed 2.7 per cent higher at $0.38 yesterday.
 
Copyright 2019 – Finance News Network


Source: Finance News Network

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