New Ownership for Australia’s Seven

SYDNEY: Seven Network is being merged with West Australian Newspapers Holdings to create Australia’s largest diversified media business, spanning broadcast television, radio, newspaper publishing, magazine publishing and online properties.

Seven Group Holdings (SGH) is selling the Seven Media Group to West Australian Newspapers (WAN) for A$4.1 billion. The merged company will be named Seven West Media. SGH will be the new company’s largest shareholder with a 29.6 percent stake. Private-equity fund KKR will hold 12.6 percent.

Peter Gammell, SGH’s chief executive, commented, “A year ago we announced the merger of Seven Network and WesTrac Group to create Seven Group Holdings. This transaction to create SGH has delivered considerable shareholder value. Today represents a logical next step. As a result of the transaction, Seven Group Holdings will be the largest shareholder in Seven West Media which will comprise two iconic Australian media assets, namely: Seven Network and the West Australian.”

Kerry Stokes, Seven’s executive chairman, added, “The media landscape is evolving rapidly. Today’s announcement provides a significant opportunity for shareholders to participate in this expanding sector. The proposed transaction to create Seven West Media brings together some of Australia’s best performing media businesses and their management teams. It is a positive step forward for The West and Seven Media Group, and I believe, for all shareholders in Seven Group Holdings and West Australian Newspapers Holdings.”