- Seven West Media (SWM) has acquired 14.9 per cent of Prime Media.
- This follows the failed acquisition of Prime after the scheme meeting where 53 per cent of votes were against the merger.
- Prime’s Chairman John Hartigan has now officially stepped down from the role, and candidates for his replacement are being assessed.
- Seven West remain steady, trading at 33.5 cents a piece.
- Prime are down 5.4 per cent, trading at 17.5 cents each.
Seven West Media (SWM) has taken a 14.9 per cent stake in Prime Media (PRT) following the Scheme meeting in Sydney this morning.
The Scheme meeting to decide on whether Seven would acquire Prime was not approved by the requisite majorities, and the merger will not go ahead.
Results of the meeting showed 46 per cent of votes were in favour of the merger, and 53 per cent of votes were against.
This was the expected outcome after media reports said two shareholders would vote against the merger
Seven and Prime have now agreed to terminate the Scheme Implementation Deed, effective immediately following the meeting.
The 14.90 per cent share capital of Prime accounts for 54,594,367 shares and was acquired from Spheria Asset Management.
Seven will acquire the Prime Shares from Spheria in exchange for the issue of 30,000,000 new shares in Seven.
Seven Managing Director and Chief Executive Officer, James Warburton said the outcome of the meeting was disappointing, but Seven was still committed to Prime.
“Prime itself has said, the business is under pressure to meet regional Australia’s needs and today’s outcome is an unfortunate result for them and their shareholders,” he said.
“We’ve taken a 14.9% stake in Prime today through the issue of 30 million SWM shares to provide stability for the business, to support regional Australia and regional news,” he said.
“We look forward to continuing our longstanding relationship with Prime, delivering outstanding content for them in 2020. We appreciate the cooperation and support of Prime’s Board and management throughout this process,” he said.
Prime to get a new Chairman
The end of the meeting also marks the departure of Prime’s Chairman John Hartigan.
Prime Non-executive director Peter Macourt will act as interim Chairman while Prime look for a new candidate.
Seven West are steady today, trading at 33.5 cents a piece at 3:20pm.
And Prime are down 5.4 per cent, trading at 17.5 cents each.