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Nine may increase holding in Macquarie Media
Posted on Tuesday, 13 August 2019 07:05
Nine Entertainment is looking to buy the remaining 45.5 per cent stake it does not already own in Australian radio broadcaster Macquarie Media for AUD 113.90 million (USD 77.22 million).
The acquiror is offering AUD 1.46 per share, representing a discount of 16.6 per cent to the target’s close of AUD 1.75 on 2nd August, the last trading day prior to the announcement, giving the company a market capitalisation of AUD 299.61 million.
Headquartered in Sydney, Nine holds a 54.5 per cent stake in the radio broadcaster through Fairfax Media, having bought the latter for AUD 2.16 billion in December last year.
The purchaser plans to fund the takeover, which is expected to complete in December 2019, using cash reserves and existing debt facilities.
However, the transaction remains subject to approval by Macquarie Media’s shareholders.
Listed on the Australian Securities Exchange (ASX), the target operates radio stations across the country and has over 2.00 million weekly listeners.
Its brands include Macquarie Sports Radio, 2GB, 4BC and 6PR.
For the financial year ended 30th June 2019, Macquarie Media generated revenue of AUD 131.80 million, down from AUD 136.30 million in the preceding 12 months.
The company posted underlying earnings before interest, taxes, depreciation and amortisation of AUD 27.10 million over the same timeframe (FY 2018: AUD 32.40 million).
Hugh Marks, chief executive of Nine, said: “The acquisition of Macquarie consolidates Nine’s position as the leading provider of news and current affairs content across all of the key platforms – television, digital, print and now radio.”
Through the purchase, the buyer expects to save AUD 10.00 million, mainly from support and administrative functions and taking out corporate costs such as ASX listing fees.
Zephyr, the M&A database published by Bureau van Dijk, shows there have been 35 deals targeting radio station operators announced worldwide since the beginning of 2019.
In the largest of these, Tegna agreed to acquire US-based WBNS TV, WTHR-TV, WBNS Radio and WALV-CD from the Dispatch Printing Company for USD 535.00 million.
© Zephus Ltd