Southern Cross Media Group has officially completed its $385 million takeover of Seven West Media, following near-unanimous shareholder approval and final sign-off from the New South Wales Supreme Court.
Under the all-scrip deal, SWM shareholders received 0.1552 SCA shares for each SWM share, with trading in the new SCA entity set to begin this week. SWM will be delisted from the ASX, marking the end of its run as a standalone listed company.
At a meeting in Sydney in December, 99 per cent of shares cast voted in favour of the merger, clearing a major hurdle in a deal designed to give the combined group greater scale and resilience in a fragmented media landscape.
Seven’s national television network, publishing assets and digital platforms have now been brought together with SCA’s extensive radio footprint and digital audio arm, including LiSTNR – a combination proponents argue will deliver more leverage in competition with global streamers and shifting audience habits.
“It’s a somewhat momentous day in Seven’s history – the conclusion of one chapter and the exciting stage of another,” Ryan Stokes, Director and Chairman of the meeting, said after the vote.
“We become a much larger, stronger and better-positioned media company, and that only bodes well for the journey going forward.”
The logic for consolidation was reinforced in November when SCA used its annual general meeting to sharpen the strategic narrative behind the tie-up.
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Chair Heith Mackay-Cruise and CEO John Kelly pitched the company as “stronger, leaner and strategically primed for one of the biggest media combinations in recent Australian corporate history,” pointing to revenue growth, improved earnings and reduced net debt.
The combined entity will operate with annual revenue approaching $2 billion and a broad reach across TV, audio, print and digital audiences.
Despite SWM contributing a majority of revenue and earnings before interest, taxes, depreciation and amortisation, Southern Cross shareholders will hold a slight majority stake in the merged business – 50.1 per cent to 49.9 per cent.
Seven West Media’s chief executive, Jeff Howard, will lead the merged group, with SCA’s Mackay-Cruise set to assume the role of chairman once current chair Kerry Stokes steps down in late February.
The tie-up brings together a national free-to-air television network, one of Australia’s largest radio portfolios, major print titles and fast-growing audio platforms.