• Independent expert concludes proposed merger between SCA and SWM is in the best interests of SCA shareholders
• Merger will create a leading integrated media company with extensive reach across Australia
• Merger expected to generate $25-30 million in annualised cost synergies

Southern Cross Media Group Limited (SCA) has received an independent expert's report from Kroll Australia Pty Ltd in relation to the proposed merger between SCA and Seven West Media Limited (SWM) by way of a scheme of arrangement. The independent expert has concluded that the proposed merger is in the best interests of SCA's shareholders (other than Excluded Shareholders), in the absence of a superior proposal. The merger will create a leading integrated media company with extensive reach across metropolitan and regional Australia, with combined revenue of approximately $1.8 billion. Completion of the proposed merger requires only SWM shareholder approval of the scheme and is subject to the satisfaction of a number of other conditions precedent, including the independent expert's conclusion that the merger is in the best interests of SCA shareholders. The independent expert has assessed the proposed merger as a 'merger of equals' and concluded that the financial terms of the scheme are fair to SCA shareholders. The merger is also considered reasonable, as it is expected to provide a number of strategic benefits, including a more diversified portfolio, an ability to leverage audience crossover and content offering, and an enhanced ability to withstand structural shifts in the advertising market. The merger is expected to generate $25-30 million in annualised cost synergies over an 18-24 month period.