West Australian Newspapers Holdings Ltd. or WAN (WAN.AX) Monday said it agreed to buy Australia-based Seven Media Group Ltd. for an enterprise value of A$4.085 billion (about $4.13 billion). The combination would create a diverse and integrated national media business, to be called Seven West Media. WAN would also undertake associated capital raising of A$1.154 billion in order to fund the deal.
Seven Media is a joint venture between Seven Group Holdings Ltd, and private equity firm Kohlberg Kravis Roberts & Co. (KKR). Seven Group, which is WAN's largest shareholder with 24.3 percent stake, is led by WAN Chairman Kerry Stokes.
In the deal, WAN will issue A$1.08 billion of stock at a price of A$5.99, and A$250 million of convertible preferred stock. Further, the company would repay A$650 million of Seven Media debt owed to Seven Group, and would assume A$2.104 billion of external debt.
Seven Group would sell its 24.3 percent stake in WAN, and will subsequently receive A$1.081 billion in WAN shares as partial consideration, resulting in an increased stake of about 29.6 percent in WAN and A$250 million of convertible preference shares.
KKR would become the second largest shareholder in the new entity with 12.6 percent stake.
WAN shareholders would vote on the proposal at an extraordinary general meeting to be held on April 11.
WAN plans to sell A$653 million in convertible unsecured loan securities through a four-for-seven rights issue at a price of A$5.20 each, and would raise A$40 million in public offer.
WAN would also conduct placement of about A$461 million shares to funds affiliated with KKR at A$5.99 per share.
The new entity would comprise WAN, 49.9 percent of the Community Newspaper Group, Seven Network, Pacific Magazines, 50 percent of Yahoo!7, and 33 percent of Sky News.
WAN said the deal would give it a high quality earnings base, as well as enhanced access to content with cross-selling and synergy opportunities. It also gives immediate value accretion for WAN, including earnings per share accretion of 6.8 percent.
Stokes said the deal would transform WAN into the largest listed Australia-domiciled media company.
As part of the proposed transaction, WAN's existing board membership will remain intact. David Leckie, the current Chief Executive of Seven Media, would become Group Chief executive officer and Managing Director of the combined group and will be appointed to board.
Separately, WAN posted a profit of A$50.1 million for the first half, 1.3 percent higher than last year. Earnings per share dropped to 23.2 cents from 23.5 cents last year. Revenue grew 2.1 percent from last year to A$209.44 million.
WAN Board also declared an interim dividend of 19 cents per share, payable on March 31, to shareholders on record on March 9.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.