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KKR-backed Seven Media bought for $4.2b

  • Anita Davis
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KKR-backed Australian media major Seven Media Group has been bought by West Australian Newspapers Holdings (WAN) for A$4.1 billion ($4.2 billion) in cash and shares – a deal that creates the largest diversified media entity in the country.

As part of the transaction, WAN will be renamed Seven West Media and the merged entity will be led by CEO of Seven Media David Leckie. According to a statement from the companies, Seven Media Group's parent, Seven Group Holdings, will hold a 29.6% stake in the merged entity, and $250 million of Seven West Media's convertible preference shares. WAN will additionally repay A$650 million ($658 million) worth of loans Seven Media owes to Seven Group Holdings. The deal is subject to approval by WAN shareholders, with the vote scheduled for April 11.

Pending shareholder approval, Seven West Media's media entities will include The West Australian, Seven Network, Pacific Magazines and Yahoo Seven, as well as a one-third stake in Sky News.

A Seven Group spokesman confirmed that KKR currently has a 47% stake in Seven Media Group, which will translate to will hold 12.6% of the combined group following the deal's completion. Seven Group Holdings currently holds 47% of Seven Media, and the remaining 6% is owned by a combination of management and mezzanine debt. KKR first invested in Seven Media in November 2006, taking a 50% stake in the company for A$3.2 billion. It later reduced its stake.

 

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