Join our daily newsletter At The Bell to receive exclusive market insights
- Nine has offered to pay nearly $114 million to buy out Macquarie Media
- Nine currently owns 54.5 per cent
- The deal will see Nine pay $1.46 a share for the remaining 45 per cent
- Both companies are set to benefit from the deal and expect to see an increase in revenue
Nine Entertainment Co has offered to pay $113.9 million for a 45.5 per cent stake of Macquarie Media.
Macquarie owns major radio stations such as 6PR, 2GB, Macquarie Sports Radio and many more.
Following Nine’s merger with Fairfax in December 2018, it became the majority shareholder in Macquarie. Nine currently owns owns 54.5 per cent of Macquarie but if the deal is successful, it will own 100 per cent of the radio network.
The acquisition will be funded from Nine’s cash reserves and exisiting debt facilities.
The deal will see Nine pay $1.46 a share for the remaining 45 per cent.
Sydney Businessman John Singleton, who owns 32.4 per cent of Macquarie, agreed to sell his stake. Mark Carnegie would sell his 3.6 per cent stake.
Macquarie’s directors have also recommended the deal.
“The IBC ( Independent Board Committee) concluded that the Offer reflects attractive value on a fundamental basis and is in the best interests of shareholders,” Macquarie Chairman Russel Tate said.
Nine CEO Hugh Marks says the deal benefits both companies.
“Together, we are investing more than $400 million per year providing premium news and editorial content, entrenching Nine as the go to place for all news needs, for all Australians,” he said.
“In addition to cost efficiency initiatives already underway at MRN, bringing the two businesses together will realise further annualised synergies of more than $10 million,” he added.
Macquarie shareholders do not need to take any action to the offer at this stage.It is anticipated that the bidders statement for the offer will be released during September.
Nine Entertainment has gained 1.60 per cent today and is currently selling shares at $1.91.
