Seven West Media (SWM) announced that it has entered into a conditional share sale agreement for the acquisition of Prime Media Group (PRT).
As a sale of the main business for the purposes of ASX listing rules, the acquisition will be subject to a vote of PRT shareholders to be held in December 2021.
Seven said she believed in the rationale for a combined Seven and Prime business model that would create a premium, wholly-owned broadcast, video and information business network across Australia with the potential to achieve more. 90% of Australia’s population each month.
Seven Managing Director and CEO James Warburton said: âThis proposal is an important step forward for both companies. SWM and PRT are excellent partners and have a long and successful relationship. Together, they will deliver the best content for our national audience and unparalleled premium income opportunities for our clients.
âThe acquisition means SWM will become Australia’s premier premium commercial broadcast, video and information network, with the potential to reach over 90% of Australia’s population each month.
âThe proposed transaction is an exciting and transformative development for advertisers and media buyers. This means that we will be able to give advertisers easy and transparent access through a single platform to the capital and regional markets, âhe said.
This is Seven’s second attempt to acquire Prime after the company’s first attempt in 2019 at the start of Warburton’s tenure. At the time, Bruce gordon and Antoine Catalano torpedoed the merger of Seven West Media and Prime Media with sufficient combined holdings to block the deal.
Gordon said at the time he would not support the Prime-Seven merger because it did not provide good shareholder value.
In August, Warburton released the company’s annual results, revealing a significant increase in profits for the fiscal year ended June 26. In addition to a profit of $ 229 million, group net debt fell 40% to $ 240 million.
Metro FTA advertising dollars increased 25.8% in the second half, up 11.5% year-over-year.
Like Seven’s counterparts, digital ad revenue was the top performer, 7plus revenue grew 78% year-on-year, with market share improving as well.