Kerry Stokes’ Seven plots merger with Triple M owner

Kerry Stokes’ Seven West Media plans to merge with Australia’s biggest radio company, Southern Cross Media, under a deal that would create a $415 million media group with television, radio and publishing operations.

Southern Cross owns the Triple M Network as well as the Hit Network, which includes stations such as Melbourne’s The Fox, while Seven owns The West Australian newspaper and the Seven Network, which has AFL and cricket broadcast rights.

Seven West Media chairman and biggest investor Kerry Stokes backs the deal.Credit: Trevor Collens

The announcement to the market on Tuesday morning said shareholders will receive 0.1552 SCA shares for every SWM share they own, resulting in Seven shareholders owning 49.9 per cent of the combined company, and Southern Cross shareholders owning 50.1 per cent.

Seven is the largest shareholder in Southern Cross’ main competitor, ARN Media, and the two companies have been touted to merge for some time. The deal is subject to regulatory approval.

The combined company will be run by Seven boss Jeff Howard, with Southern Cross chief executive John Kelly set to head its audio assets.

Billionaire Kerry Stokes, Seven’s chair and its biggest investor, backed the proposed merger, saying it would bring significant financial and strategic benefits for his company’s shareholders.

“This is an important merger, as the combined company will be better able to serve both metropolitan and regional viewers, listeners, partners and advertisers. It will add strength to each of the combined businesses’ television, audio, digital and publishing operations across the country,” Stokes said in the statement.

More to come.

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