• Establishes a leading integrated media company with extensive scale and reach across Australia
• Combines highly complementary businesses with strong positions in the Australian advertising market
• Positioned to attract and grow high value audiences, delivering revenue and earnings growth

Seven West Media Limited (ASX: SWM) and Southern Cross Media Group Limited (ASX: SXL) have entered into a Scheme Implementation Deed in relation to a proposed merger between the two companies. The Proposed Merger will establish a leading integrated media company with extensive scale and reach across metropolitan and regional Australia. It combines two highly complementary businesses with strong positions in the Australian advertising market across their free-to-air television, streaming, audio, digital and publishing assets. The combined business will be strongly positioned to attract and grow high value audiences (25-54), delivering revenue and earnings growth and unlocking significant shareholder value. Under the Proposed Merger, SWM shareholders will receive 0.1552 SCA shares for every SWM share, which would result in SWM shareholders and SCA shareholders owning 49.9% and 50.1% of the combined business, respectively. SWM and SCA management anticipate between $25-30 million annual pre-tax cost synergies, with incremental revenue synergies also expected to be created. The Proposed Merger will be effected by way of a SWM scheme of arrangement, with the unanimous recommendation of the SWM Board.

SWM and SCA management anticipate between $25-30 million annual pre-tax cost synergies, to be realised within 18-24 months post completion.