As expected, shareholders in West Australian Newspapers Holdings have approved the $4.1 billion purchase of Seven Media Group to create Seven West Media.
Just over 60% of shares in WAN were cast in favour of the transaction, which would also see Seven Media’s current owner, Seven Group Holdings Ltd, emerging with about 29.6% of the new company.
Seven Group welcomed the shareholder approval in a statement on Monday and said Seven West Media would be Australia’s leading publicly listed media company.
The steps to create Seven West Media, which would have television, radio, newspaper, magazine and online assets would be completed by April 21.
SGH Group Chief Executive, Mr. Peter Gammell, said: "SGH is pleased that it will become the major shareholder in Seven West Media, which has strong media assets and management and is well-placed to play a leading role in the development of media in Australia.
"Seven West Media is an important investment for SGH, enabling SGH shareholders to recognise the underlying value of their media interests.
"Coupled with our investments in Consolidated Media and 4G broadband group vividwireless and our expanding WesTrac business, we are well-placed for future growth in two expanding sectors: media and industrial services."
Chairman of SGH and Seven West Media, Kerry Stokes, said: "The scope and scale of our media businesses with Seven West Media will create further opportunities to ensure that we have a strong, local, vibrant media presence creating content for Australians in an increasingly fragmenting and competitive media landscape."
WAN shares eased 1.3% or 7c to $5.29 yesterday.
