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

Seven West Media Limited (ASX: SWM) has entered into a Scheme Implementation Deed with Southern Cross Media Group Limited (ASX: SXL) to pursue a 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. The combination of the two highly complementary businesses will create a strong position in the Australian advertising market across their free-to-air television, streaming, audio, digital and publishing assets. The combined business will be well-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, resulting 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 merger will be effected by way of a SWM scheme of arrangement, with the unanimous recommendation of the SWM Board.

The combined business anticipates between $25-30 million annual pre-tax cost synergies, to be realised within 18-24 months post completion.

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. The merger will create a leading integrated media company with extensive scale and reach across metropolitan and regional Australia.