Seven West shareholders overwhelmingly back Southern Cross takeover

Seven West Media shareholders have thrown their support behind the acquisition of the company by Southern Cross Media, backing the merger at a meeting on Monday.

A total of 99.36 per cent of the votes cast by Seven West shareholders favoured the acquisition by way of a scheme of arrangement.

Under the proposal, Seven West shareholders will receive 0.1552 Southern Cross shares for every SWM share they own. Prior to the vote, SWM directors unanimously recommended shareholders approve the merger.

If the scheme is implemented, existing Seven West shareholders will hold 49.9 per cent of the combined group and Southern Cross shareholders will own the remaining 50.1 per cent.

In an address to shareholders ahead of the vote, Seven West chairman Kerry Stokes described the proposal as a pivotal moment for the company.

“This scheme will create a leading integrated total television, audio and digital platform. It is a pivotal moment,” he said.

“The combination of these two great companies will bring together the best content creators in the country and deliver significant financial and strategic benefits.

“This is an opportunity to create a national, diversified media organisation with extensive scale and reach across free-to-air television, streaming, audio, digital and publishing assets.”

Stokes said the merger would be a seamless combination of high-value brands.

“If the scheme is approved, I will then hold the role of Chair of the board of the combined group until stepping down from the board at the end of February 2026,” he said.

“On that note, I wish to thank all our board directors for their dedication. And on behalf of the board, I thank you, our shareholders, for your support.”

Southern Cross owns the Triple M Network as well as the Hit Network, which includes stations such as Melbourne’s The Fox, while Seven owns The West Australian newspaper and the Seven Network, which boasts the AFL and cricket broadcast rights.

The shareholder vote effectively brings an end to Stokes’ reign at Seven when he steps down from the board next year, once all approvals have been put in place for the Southern Cross merger.

While his son, Ryan Stokes, will retain a board seat on the consolidated Seven-Southern Cross company, the family’s stake will be cut from 40 to 20 per cent.

The agreement between the two media companies was formally announced to the ASX on September 30, with Southern Cross chairman Heith Mackay-Cruise saying at the time that the merger would create a leading integrated total TV, audio and digital platform.

“The combination of SCA’s and SWM’s leading brands on broadcast and digital platforms establishes an indisputable leader across the critical 25-54 ‘audience that matters’ demographic,” he said.

“The merged entity will offer partners and clients a ‘one stop shop’ for opportunities to reach this valuable audience across all mediums, leveraging shared content and commercial opportunities to add value beyond the initial cost synergy estimates.

“The SCA Board has carefully considered this transaction and firmly believes that this proposal is in the best interests of the SCA shareholders. We are confident the merger has the potential to create significant value for SCA shareholders.”

The Australian Communications and Media Authority provided written approval of the proposed merger to SWM on November 27.

The Australian Competition and Consumer Commission also opted not to stand in the way of the deal last month, paving the way for the merger to create a $415 million TV, radio and publishing group.

Deputy chairman Mich Keogh said the commission reviewed how closely Seven and Southern Cross competed across different markets, particularly in regional WA.

It found the two companies attracted different advertisers and were not close competitors for the supply of advertising opportunities.

“Local businesses and media agencies seeking to advertise in regional areas will continue to have a range of options in these local markets, including online and social media advertising with geo targeting capabilities,” Keogh said.

“Owners of traditional media platforms such as radio, free-to-air television and newspapers will continue to face strong competition from digital media. Southern Cross will be no exception, even after the acquisition.”

The scheme remains subject to the approval of the Supreme Court of New South Wales at a hearing scheduled for Tuesday morning.

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