- Seven West Media (ASX:SWM) acquires a 14.9 per cent strategic stake in ARN Media (ASX:A1N)
- SWM has also entered a cash-settled equity swap with Barrenjoey Markets for a further 5.0 per cent stake
- The media giant maintains its support for ARN’s business direction amidst industry consolidation talks
- SWM shares last traded at 27 cents, while A1N shares last traded at 91 cents
Media giant Seven West Media (ASX:SWM) has acquired a 14.9 per cent strategic stake in ARN Media (ASX:A1N).
Not only that, SWM has also entered into a cash-settled equity swap with Barrenjoey Markets, securing an additional 5.0 per cent interest in ARN.
Seven West secured the investment at $1.10 per A1N share, underscoring SWM’s commitment to fostering the success of ARN, a company with which it already shares longstanding commercial partnerships.
The total investment, amounting to approximately $50.1 million, reflects SWM’s belief in the value presented by this move amidst ongoing consolidation activities within the sector.
“We believe that this strategic holding presents strong value for our shareholders in light of sector consolidation activity,” SWM Chairman Kerry Stokes said.
“SWM’s objective is to be Australia’s most connected news, sport and entertainment brand,” SWM Managing Director and CEO James Warburton said.
Seven West announced its awareness of the recent announcements surrounding a non-binding indicative proposal between A1N and others but reported it doesn’t intend to launch a takeover for A1N or Southern Cross Media Group (ASX:SXL).
SWM shares last traded at 27 cents, while A1N shares last traded at 91 cents.