Seven completes Prime deal as executives exit

Seven West Media has completed its $133.88 million acquisition of Prime Media Group’s business and assets, placing the Kerry Stokes-controlled network in a much stronger position as it moves into 2022.

Shareholders approved the deal to merge the two long-time business partners at an extraordinary meeting on December 23.

Seven chief executive James Warburton said deal was a “game changer”. Credit: James Alcock

Under the deal, Prime shareholders will receive 36¢ per share including a special fully franked dividend of 26¢. Prime shareholders will receive a distribution on January 22.

Prime told the ASX on Friday that it intended to proceed with a winding-up or other dealing with the shell company following the payment of the distribution in January or February. It expects its shares to be suspended from trade from January 25.

Seven West Media chief executive James Warburton, who has long advocated for the businesses to merge into a larger company, said the deal was a game-changer for both businesses.

“We now have the potential to reach more than 90 per cent of Australia’s population each month as one integrated company and to give advertisers and agencies easy and seamless access to metro and regional markets,” he said.

Seven also plans to reinvest in content and expand its delivery of the group’s offering in regional markets.

The tie-up is expected to generate estimated cost synergies of between $5 million and o $10 million on an annualised basis. The combined business expects revenues to be positively impacted by the transaction as well but is yet to quantify the benefit.

As expected, the completion of the deal saw Prime’s most senior staff leave the company. Chief executive Ian Audsley and chief financial officer John Palisi stepped down on December 31 after being made redundant as part of the sales process.

Prime’s chairman, Cass O’Connor, praised Mr Audsley’s contribution to the business in a statement put out on Friday.

“Ian has been an increasingly influential network television executive over the past 30 years. Ian’s championship of regional television ad spend via Boomtown and structural reform benefited the entire regional television industry in Australia.”

Mr Palisi has been appointed as a non-executive director of Prime to assist with the winding-up of the shell company.