AUCKLAND, Today: MediaWorks and Sydney-based QMS Media Limited have entered into a heads of agreement for a proposed merger of QMS Media’s New Zealand out-of-home, production and digital media business, and MediaWorks’ radio, TV and digital business.
The transaction is subject to agreeing final binding terms as well as several customary conditions and is expected to complete in the second quarter of 2019.
The proposed merger would see QMS merge its businesses into MediaWorks and in return receive a material “but not controlling” share of the company in the expanded MediaWorks business, with funds managed by LA-based Oaktree Capital Management Limited Partnership – who will hold the majority.
“The proposed merged group would deliver compelling value for advertisers via a combined sales network and complementary cross-stream revenue opportunities,” said MediaWorks chairman Jack Matthews (in a release distributed by MediaWorks head of comms Charlotte McLauchlan).
“Under Michael Anderson’s leadership MediaWorks has made great strides over the past two years,” Matthews said. “With this proposed merger, MediaWorks will be able to further enhance its ability to deliver high quality local content and more effective advertising solutions to our customers.
“It will represent a significant investment in and commitment to New Zealand.”
“This will represent a significant investment in – and commitment to – New Zealand.”
Wayne Stevenson, the Melbourne-based chairman of QMS, said: “New Zealand is important to our business and we are excited about the potential opportunity to create a leading multi-media group that will transform the New Zealand advertising industry.”
Michael Anderson, who would remain ceo of MediaWorks, said: “After discussions with QMS, we are confident that this proposed partnership would create an unrivalled multi-platform media company in New Zealand giving us unprecedented capacity to integrate clients across four platforms – radio, TV, out-of-home and digital.
“This will present an outstanding opportunity to build our market presence with product and audience breadth in an environment where we are able to grow and enable our continued investment in local content.”
The transaction is expected to complete in the second quarter of 2019.
MediaWorks is New Zealand’s largest independent broadcaster and reaches more than 4 million New Zealanders through its TV, radio and digital platforms. The company is owned by funds managed by Oaktree Capital Management, L.P, a leading global investment management firm headquartered in Los Angeles.
QMS Media Limited is a publicly listed company on the Australian Stock Exchange. QMS is a leading outdoor media company in Australia, New Zealand and Indonesia, specialising in premium landmark digital and static billboards, street furniture, sport and transit media.
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