• Independent Expert concludes proposed merger between SCA and SWM is in the best interests of SCA shareholders
• Proposed merger will create a leading integrated media company with extensive reach across Australia
• Combination expected to generate $25-30 million in annualized 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 implementation of the proposed merger will create a leading integrated media company with extensive reach across metropolitan and regional Australia. The combined entity will be one of the largest Australian media companies, with combined revenue of approximately $1.8 billion. The proposed merger is expected to generate $25-30 million in annualized cost synergies over an 18-24 month period. The Independent Expert has assessed the proposed merger as a 'merger of equals' and concluded that the financial terms are fair to SCA shareholders. The combined group will have a more diversified portfolio across TV, radio, print and digital platforms, allowing it to better withstand structural shifts in the advertising market. SCA shareholders are encouraged to read the Independent Expert's Report in full.

The proposed merger is expected to generate $25-30 million in annualized cost synergies over an 18-24 month period.

The combined entity is expected to have a more diversified portfolio across TV, radio, print and digital platforms, allowing it to better withstand structural shifts in the advertising market.