Seven West Media Limited (ASX:SWM) to Merge with Southern Cross Media Group
Merger Announcement
Seven West Media Limited (ASX:SWM) has entered into a Scheme Implementation Deed with Southern Cross Media Group Limited (ASX:SXL) to undertake a proposed merger. This merger aims to establish a leading integrated Total TV, Audio, and Digital platform across metropolitan and regional Australia.
Strategic Rationale
The merger combines two complementary businesses with strong positions in the Australian advertising market, encompassing free-to-air television, streaming, audio, digital, and publishing assets. The integrated entity is positioned to attract and grow high-value audiences aged 25-54, driving revenue and earnings growth while unlocking significant shareholder value.
Financial Synergies and Share Exchange
Under the proposed merger, SWM shareholders will receive 0.1552 SCA shares for every SWM share they own. Post-merger, SWM and SCA shareholders will hold 49.9% and 50.1% of the combined business, respectively. The merger is expected to generate annual pre-tax cost synergies between $25-30 million and additional revenue synergies through enhanced audience reach and advertising scale.
Management and Governance
Jeff Howard, Managing Director and CEO of SWM, stated, “This combination marks a pivotal moment for Australian media. By bringing together the complementary assets and brands of SWM and SCA, we are creating a truly national, diversified media organisation.”
Heith Mackay-Cruise, Chairman of SCA, added, “This merger will create one of Australia’s leading Total TV, Audio and Digital platforms, with the scale, reach and diversification to better serve Australian audiences and communities.”
Approval and Timeline
The merger is subject to regulatory approvals from ACMA, ACCC, and ASX, as well as the approval of SWM shareholders. The Scheme Meeting is expected to be held by Q1 CY2026, contingent upon the fulfillment of all conditions precedent.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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