• Combination of leading brands and channels across 25-54 audience in metro and regional markets
• $25-30 million annual pre-tax cost synergies expected
• Transaction expected to be >100% EPS accretive to SCA shareholders

Southern Cross Media Group Limited (SCA) and Seven West Media Limited (SWM) have entered into a Scheme Implementation Deed to merge the two companies. Under the proposed merger, SWM shareholders will receive 0.1552 SCA shares for every SWM share they own, resulting in SCA shareholders owning 50.1% and SWM shareholders owning 49.9% of the combined group. The transaction is expected to be more than 100% EPS accretive to SCA shareholders. The merged entity will create a leading integrated Total TV, Audio and Digital platform, combining the brands, broadcast and digital channels of both companies. This will provide a combination of leading brands and channels across the critical 25-54 audience demographic in both metropolitan and regional markets. SCA and SWM anticipate annual pre-tax cost synergies of $25-30 million, to be realised within 18-24 months post completion. The transaction will also improve the market reach, financial profile, free float, liquidity, and investor relevance of the combined group. The SWM Board has unanimously recommended the proposal to its shareholders, and SGH Limited, which owns a 40.2% stake in SWM, has indicated it intends to vote in favour of the merger.

The transaction is expected to be >100% EPS accretive to SCA shareholders on an FY26 basis, assuming A$30 million of cost synergies.