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Getting your Trinity Audio player ready...
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Sports Entertainment Group Limited (ASX: SEG) has announced it has entered into a binding agreement to acquire 100 per cent of MediaWorks, described as New Zealand’s number one audio business, for an enterprise value of $130 million.
The acquisition creates a leading trans-Tasman audio, digital and entertainment group reaching more than five million listeners each week across Australia and New Zealand.
MediaWorks is New Zealand’s largest radio business and third largest local advertising platform across all media.
It holds approximately 59 per cent audience share in the key 25 to 54 age demographic, reaches around 2.51 million listeners every week, and owns some of the country’s most recognisable stations, including The Rock, More FM, The Sound, George FM, Mai FM, Breeze, The Edge, Channel X, Breeze Classic and Humm.
The business also operates Rova, its proprietary digital audio platform for live radio, podcasts and on-demand content.
The two businesses are highly complementary, says SEG.
“SEG brings Australia’s only whole-of-sport media platform, spanning premium sports rights, owned content, talent, team ownership, production and events.
“MediaWorks brings market leadership in music and entertainment radio in New Zealand.
“Together they create a single trans-Tasman platform that connects advertisers to fans across sport, music and entertainment, through radio, digital, podcast, TV, and live experiences.
“The acquisition returns SEG to New Zealand as the clear market leader and gives SEG a ready-made platform to extend its sport, events and content offering into New Zealand, and a digital growth engine in Rova,” it says.
The transaction will 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 AU$35m.
Completion is targeted for October 1, they say, subject to customary conditions including New Zealand Overseas Investment Office approval.
The existing MediaWorks management team, led by chief executive Wendy Palmer, will continue to lead the New Zealand business.
SEG chief executive Craig Hutchison says the acquisition is the biggest moment in the company’s history.
“MediaWorks is New Zealand’s number one audio business, third biggest media business, and has an incredible connection with its market leading audio audience.
“We have enormous respect for the business and see huge upside in driving growth in step with our content and services offering and can’t wait to get to work with Wendy Palmer and her team.”
Palmer says: “Off 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’ve built as New Zealand’s leading audio and digital business.
“Joining forces gives our team access to genuine scale and capability. We’re looking forward to what we can build together across the Tasman.”
