Mediaworks And QMS NZ Agreement to Merge
Thursday, 29th November 2018
Mediaworks And QMS NZ Announce They Have Entered into a Heads of Agreement to Merge
MediaWorks and QMS Media Limited (ASX: QMS) today announce they have entered into a heads of agreement for a proposed merger of QMS Media’s New Zealand out-of-home, production and digital media business (QMS NZ) and MediaWorks, New Zealand’s leading radio, TV and digital business. The transaction is subject to agreeing final binding terms as well as several customary conditions and is expected to complete in the second quarter of CY 2019.
The proposed merger would see QMS merge its NZ out-of-home, digital media and production businesses into MediaWorks and in return will receive a material but not controlling share of the company in the expanded MediaWorks business, with funds managed by Oaktree Capital Management, L.P retaining a majority.
The proposed merger of QMS NZ and MediaWorks would be a first in this market to realise the combined power of out-of-home, radio, TV and digital as an unrivalled destination for advertisers to build brands and maximise audience reach. This future view of the media industry is consistent with recent international trends that place significant value on the power of multi-media ownership. The proposed merged group would deliver compelling value for advertisers via a combined sales network and complementary cross-stream revenue opportunities.
Jack Matthews, MediaWorks Chairman said:
“Under Michael Anderson’s leadership MediaWorks has made great strides over the past two years. With this proposed merger, MediaWorks will be able to further enhance its ability to deliver high quality local content and more effective advertising solutions to our customers. It will represent a significant investment in and commitment to New Zealand.”
Wayne Stevenson, QMS Chairman said:
“New Zealand is important to our business and we are excited about the potential opportunity to create a leading multi-media group that will transform the New Zealand advertising industry.”
Michael Anderson, who would remain CEO of MediaWorks, said:
“After discussions with QMS, we are confident that this proposed partnership would create an unrivalled multi-platform media company in New Zealand giving us unprecedented capacity to integrate clients across four platforms - Radio, TV, Out-of-Home and Digital.
“This will present an outstanding opportunity to build our market presence with product and audience breadth in an environment where we are able to grow and enable our continued investment in local content across Television, Radio and Digital.”
Proposed Transaction Highlights
QMS proposes to merge its NZ out-of-home, digital media and production businesses into MediaWorks and receive in return a material but not controlling share of the company in the expanded MediaWorks business, with funds managed by Oaktree Capital Management, L.P retaining a majority.
Transformational multi-media provider across four platforms, delivering the combined power of out-of-home, radio, TV and digital, with a strong localised presence and experienced leadership.
The proposed combined sales network will maximise revenue opportunities and deliver strong cash flow to the group.
The transaction is subject to agreeing final binding terms as well as several customary conditions and is expected to complete in the second quarter of CY 2019