Australia

Seven gets all clear to buy $130m rival

Seven West Media is set to snap up regional affiliate Prime. Picture: NCA NewsWire / Nicki Connolly

Seven West Media has been given the all clear to complete its purchase of the $130m Prime Media Group in time for Christmas.

The Australian Competition and Consumer Commission on Thursday morning gave Seven its blessing to pursue the deal – which was pencilled in by both companies a month ago – bringing an end to the long-running pursuit of its regional affiliate.

Seven, which owns the West Australian newspaper and a national TV and digital network, originally tried to buy Prime in 2019.

Read Next

But where the Kerry Stokes-backed firm was unable to seal the deal two years ago, in November it managed to convince Prime’s shareholders of the bona fides.

Seven chief executive James Warburton and Seven West media boss Kerry Stokes. Picture Nikki Short
Seven chief executive James Warburton and Seven West media boss Kerry Stokes. Picture Nikki Short

The $130m price tag represents a significant improvement on the $60m offered in 2019 and will give Prime investors 36 cents per share, including a special fully franked dividend of 26 cents.

A Prime shareholder vote on the package is set to take place on December 23 after the ACCC said it would not stand in the way of the deal.

“Consistent with our findings in 2019, we concluded that the proposed acquisition was unlikely to substantially lessen competition or choice for advertisers and consumers,” the ACCC said on Thursday.

“This is because Seven West Media and Prime are not particularly close competitors in the supply of advertising opportunities or the supply of media content, and other competitors will constrain the merged entity.”

Prime’s major shareholders include ACM boss Anthony Catalano and his business partner Anthony Waislitz. Picture by Stuart McEvoy/The Australian.
Prime’s major shareholders include ACM boss Anthony Catalano and his business partner Anthony Waislitz. Picture by Stuart McEvoy/The Australian.

Most of Prime’s broadcast content is supplied by Seven West Media, although Prime produces its own regional news in some regions, including the GWN7 News broadcast in regional WA on weeknights.

Related News  DFAT seeks 'urgent access' to Kylie Moore-Gilbert after transfer to new Iran prison

Prime’s major shareholders include ACM boss Anthony Catalano and his business partner Anthony Waislitz and media mogul Bruce Gordon.

Shares in Seven West Media were down 3.1 per cent at 62 cents in a flat morning for the ASX, while Prime shares rose 1.2 per cent to 43 cents.

Seven recently announced it had renegotiated its eye-watering $600m debt, securing improved terms with ANZ and Westpac.

Read Next

For more updates check below links and stay updated with News AKMI.
Education News || Politics News || Journal News || Daily Local News || Lifetime Fitness || Sports News || Automotive News

Source

Related News  Protesters Gather at US Supreme Court as Controversial Mississippi Abortion Law Is Argued
Tags
Show More

Related Articles

Back to top button

usa news wall today prime news newso time news post wall

Close