Seven makes play for radio

Seven makes play for radio

Seven West Media Limited has acquired a 14.9% shareholding in ARN Media Limited home to KIIS FM and Gold brands, including the Kyle and Jackie O Show.

ARN last month made a bid for its main rival, Southern Cross Austereo. Sources close to the deal said Seven supported ARN’s bid to take over Southern Cross.

ARN is part owned by News Corp Australia, which has a 13 per cent stake. Sources said News Corp would keep its stake while Seven and bankers Barrenjoey bought from other institutional investors.

SWM acquired the shares at $1.10 per A1N share. SWM spent approximately $50.1 million in acquiring the 14.9% shareholding and has prefunded the swap on an equivalent pricing basis.

AFR reports Seven is limited to a 19.9 per cent stake in ARN under the Corporations Act – any higher, and it would need to launch a takeover.

SWM Chairman, Mr Kerry Stokes, said: “Seven West Media has a disciplined approach to value creation in the media sector. We believe that this strategic holding presents strong value for our shareholders in light of sector consolidation activity.”

SWM Managing Director and Chief Executive Officer, James Warburton, said: “SWM’s objective is to be Australia’s most connected news, sport and entertainment brand. Our investment in A1N aligns with our strategic pillar of partnering for growth, and we look forward to continued collaboration across our two companies.”