Seven West shareholders overwhelmingly back Southern Cross takeover

2 months ago 5

Seven West Media shareholders have thrown their support behind the acquisition of the company by Southern Cross Media, backing the merger at a meeting on Monday.

A total of 99.36 per cent of the votes cast by Seven West shareholders favoured the acquisition by way of a scheme of arrangement.

Under the proposal, Seven West shareholders will receive 0.1552 Southern Cross shares for every SWM share they own. Prior to the vote, SWM directors unanimously recommended shareholders approve the merger.

If the scheme is implemented, existing Seven West shareholders will hold 49.9 per cent of the combined group and Southern Cross shareholders will own the remaining 50.1 per cent.

In an address to shareholders ahead of the vote, Seven West chairman Kerry Stokes described the proposal as a pivotal moment for the company.

“This scheme will create a leading integrated total television, audio and digital platform. It is a pivotal moment,” he said.

“The combination of these two great companies will bring together the best content creators in the country and deliver significant financial and strategic benefits.

“This is an opportunity to create a national, diversified media organisation with extensive scale and reach across free-to-air television, streaming, audio, digital and publishing assets.”

Stokes said the merger would be a seamless combination of high-value brands.

“If the scheme is approved, I will then hold the role of Chair of the board of the combined group until stepping down from the board at the end of February 2026,” he said.

“On that note, I wish to thank all our board directors for their dedication. And on behalf of the board, I thank you, our shareholders, for your support.”

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 boasts the AFL and cricket broadcast rights.

The scheme remains subject to the approval of the Supreme Court of New South Wales at a hearing scheduled for tomorrow morning.

The Australian Competition and Consumer Commission opted not to stand in the way of the deal last month, paving the way for the merger to create a $415 million TV, radio and publishing group.

In a statement on Thursday, ACCC deputy chairman Mich Keogh said the commission reviewed how closely Seven and Southern Cross competed across different markets, particularly in regional WA.

It found the two companies attracted different advertisers and were not close competitors for the supply of advertising opportunities.

“Local businesses and media agencies seeking to advertise in regional areas will continue to have a range of options in these local markets, including online and social media advertising with geo targeting capabilities,” Keogh said.

“Owners of traditional media platforms such as radio, free-to-air television and newspapers will continue to face strong competition from digital media. Southern Cross will be no exception, even after the acquisition.”