Southern Cross Media Group completes acquisition of Seven West Media
Two of Australia’s biggest media companies have joined forces as of Wednesday, with the merger of Southern Cross Media Group and Seven West Media officially completed.
Last month, shareholders in Seven West Media voted overwhelmingly in favour of the $385 million merger with the company behind the Triple M and Hit radio brands.
Southern Cross on Wednesday told shareholders it had completed its acquisition of Seven West Media, with Seven shareholders receiving 0.1552 shares in Southern Cross for every Seven West share.
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By continuing you agree to our Terms and Privacy Policy.Although Southern Cross Media is legally buying Seven West Media, the scrip-based transaction will result in shareholders of both companies ending up with about 50 per cent of the combined company.
Until a new name is chosen, the business will be called Southern Cross Media and trade on the Australian Securities Exchange under the ticker, SXL.
Seven West Media’s Jeff Howard has assumed the role of managing director and chief executive of the combined entity.
“We can unlock the opportunity to extend our exceptional storytelling capabilities into new audiences, leveraging each of our core capabilities to empower the whole,” Mr Howard said in an email to staff on Wednesday.
“SCA’s strength in audio and track record of delivering results speaks for itself.
“Seven West Media’s platform leadership and content powerhouse status is unmatched. Together, our combined opportunity is extraordinary.”
John Kelly has stepped down from the Southern Cross board as chief executive and will become managing director of its audio division.
Seven CFO Craig Haskins has advised the board of his intention to retire after a period of transition during the current quarter.
Toby Potter will remain as Southern Cross CFO on an interim basis until a search for his permanent replacement is completed.
Southern Cross Media is now owner of the Seven Network, and West Australian Newspapers, which publishes The Nightly, The West Australian and The Sunday Times. It maintains its holding of LiSTNR, and the Hit and Triple M audio networks.
Seven West Media chair Kerry Stokes will chair the new board until the end of next month before Southern Cross director Heith Mackay-Cruise assumes the role.
Shares in the combined entity begin trading on the ASX from Thursday.
