The sale was scheduled for October 1, subject to conditions including approval from New Zealand\u2019s Overseas Investment Office.<\/p>\n
SEG said the acquisition would be funded through a combination of existing cash, a new senior debt facility from the Commonwealth Bank of Australia, and a fully underwritten placement to raise approximately $35m.<\/p>\n
SEG chief executive Craig Hutchison.<\/p>\n
SEG chief executive Craig Hutchison said the acquisition was the \u201cbiggest moment\u201d in the company\u2019s history.<\/p>\n
\u201cMediaWorks is New Zealand\u2019s number one audio business, third biggest media business, and has an incredible connection with its market-leading audio audience,\u201d he said in a statement.<\/p>\n
\u201cWe have enormous respect for the business and see huge upside in driving growth in step with our content and services offering, and can\u2019t wait to get to work with Wendy Palmer and her team.\u201d<\/p>\n
He told the ASX that the deal was \u201ctransformational\u201d and would allow SEG to extend its sport, digital and entertainment \u201ccapability\u201d to New Zealand.<\/p>\n
SEG told the ASX that about $A5m in annual \u201csynergies\u201d had been identified. The acquisition was expected to be \u201cmaterially accretive\u201d to SEG\u2019s earnings per share. <\/p>\n
\u201cOn a pro forma combined basis and prior to identified synergies, SEG and MediaWorks generated combined Ebitda of approximately $A36m in the 12 months to 30 June 2026, increasing to approximately $46.1m after the $A5m of identified synergies.\u201d<\/p>\n
Palmer said: \u201cOff the back of strong growth, this is a hugely exciting moment for MediaWorks – SEG is a media company that shares our relentless focus on audiences and customers, and their investment in our future is a strong vote of confidence in this team, our brands and the position we\u2019ve built as New Zealand\u2019s leading audio and digital business. <\/p>\n
\u201cJoining forces gives our team access to genuine scale and capability. We\u2019re looking forward to what we can build together across the Tasman.\u201d<\/p>\n
MediaWorks, which also owns Mai FM, The Sound and The Edge stations and digital platform Rova, hired Jarden\u2019s New Zealand banking team to manage the sale process.<\/p>\n
Simon Barnett and Lana Cochrane-Searle host MediaWorks’ More FM breakfast show.<\/p>\n