New Zealand broadcaster MediaWorks mulls IPO plans

MediaWorks operates nine national radio brands, 12 websites and one locally operated radio station.

The private equity owners of the New Zealand broadcaster MediaWorks are believed to be exploring plans for an initial public offering, according to sources.

MediaWorks is a radio, outdoor advertising and interactive media company jointly owned by the US-based Oaktree Capital Management and Quadrant Private Equity.

Quadrant gained its 40 per cent interest in the business through the acquisition of out-of-home advertising company QMS last year for $571.6m.

It is believed that Quadrant is exploring options for QMS, where it breaks up the business and offloads divisions separately.

It is understood the buyout fund has been in talks about a sale of the sporting events within QMS with a US buyer.

The understanding is that it may look to list or sell the outdoor advertising operations of the company separately.

MediaWorks operates nine national radio brands, 12 websites and one locally operated radio station.

The radio arm has always been considered the most lucrative part of the company.

This month, it reached a deal to sell off the loss-making television arm to US-based broadcaster Discovery.

MediaWorks this year appointed Cam Wallace as its chief executive.

Talk of a prospective float comes after a raft of informal approaches to prospective buyers around the market, including Southern Cross Media.

Investment bank UBS has been working with the company.

MediaWorks has about nine radio brands in its portfolio, including those such as The Breeze, The Edge and The Rock.

Market analysts believe that the broadcaster could be worth about $300m.

It comes after numerous attempts to sell MediaWorks over the years by Oaktree, which was never able to attract a price at which it was prepared to sell the asset.