AUCKLAND, Monday: QMS NZ and MediaWorks have confirmed they will merge their businesses, with QMS holding 40% of the expanded MediaWorks group.
They claim that the merger will establish the largest multi-media advertising group in New Zealand.
The key facts (as provided in a statement from MediaWorks Corporate Communications):
- QMS will merge its NZ out-of-home, digital media and production businesses into MediaWorks
- and in return will receive a 40% shareholding in the expanded MediaWorks business.
- Funds managed by Oaktree Capital Management (US-based owner of MediaWorks) will retain a majority 60% shareholding.
- QMS NZ is budgeted to deliver a return of A$12.8m.
- Transaction completion is subject to finance approval and other customary conditions (including Overseas Investment Office NZ) and is expected to complete in the second quarter of CY19.
- QMS will hold two seats on the board, with Oaktree holding three.
“QMS will hold two seats on the board, with Oaktree holding three.”
Wayne Stevenson, chairman of QMS Media, said: “For QMS, this merger reinforces our prudent management of assets and realises value for shareholders from our investments in New Zealand. The
transaction will allow us to continue to create further opportunities to unlock value for shareholders and further accelerate our growth in a consolidating environment.”
The MediaWorks release said: “QMS NZ’s existing leadership will be strengthened by the out-of-home advertising industry experience of MediaWorks’ ceo Michael Anderson and chairman Jack Matthews, both of whom have significant knowledge and expertise across radio and TV as well as out-of-home.”
Auckland-based Michael Anderson will continue as ceo of the combined group.
QMS is being advised on this transaction by CLSA and Chapman Tripp. MediaWorks is being advised by UBS and MinterEllisonRuddWatts.
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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