Kerry Stokes’ Seven swoops on ARN Media, takes near 20pc stake
Seven West Media, the broadcaster backed by billionaire Kerry Stokes, has become the largest shareholder in ASX-listed radio company ARN Media after grabbing a 19.9 per cent stake in an off-market weekend raid.
Multiple sources close to Seven, who requested anonymity due to confidentiality clauses, confirmed Seven had spent about $60 million to acquire a stake at about $1.10 a share via its bankers at Barrenjoey – a roughly 30 per cent premium to its last trading price of 84¢.
Seven West Media chairman Kerry Stokes. Trevor Collens
Seven has a 14.9 per cent direct holding in ARN, while Barrenjoey holds a 5 per cent cash-settled equity swap, the sources said. A statement is expected to be filed with the ASX on Monday morning.
ARN – the home of the Kyle and Jackie O Show, the KIIS FM and Pure Gold brands and a network of regional radio stations – last month made a bid for its main rival, Southern Cross Austereo. Sources close to the deal said Seven supported ARN’s bid to take over Southern Cross.
ARN is part owned by News Corp Australia, which has a 13 per cent stake. Sources said News Corp would keep its stake while Seven and Barrenjoey bought from other institutional investors. The purchase does not require regulatory approval because it does not breach media ownership laws. Seven is limited to a 19.9 per cent stake in ARN under the Corporations Act – any higher, and it would need to launch a takeover.
Seven’s share price has languished, falling 40 per cent over the past year in a challenged advertising market that does not reward television-heavy media companies. The company was worth $419 million on Friday.
Last week, Seven chief executive James Warburton announced the company had refinanced its debt facility from $600
Read more on afr.com
