MediaWorks and QMS Media Limited have completed the merger of QMS Media Limited's New Zealand out-of-home, digital media and production business and MediaWorks, the New Zealand radio, TV and digital business.
The merger establishes the multi-platform media company as having the largest audience in New Zealand, Mediaworks says.
The merged entity has also announced it has entered into an unconditional agreement to acquire ETC Media's premium Christchurch digital billboard portfolio, adding 12 large format digital billboards to its existing national digital portfolio.
MediaWorks, which owns Newshub, says the acquisition will further extend its market leadership position with New Zealand's largest large format digital network now encompassing Auckland, Wellington, Christchurch, Whangarei, Hamilton, Tauranga, Rotorua and New Plymouth.
With the merger completed, QMS will hold a 40 percent interest in the combined New Zealand business, with funds managed by Oaktree Capital Management L.P. (Oaktree) holding a majority 60 percent shareholding.
QMS will hold two seats on the ﬁve member board with Wayne Stevenson (QMS Chairman) and Barclay Nettlefold (QMS Managing Director and Group CEO) appointed as directors, effective immediately.
QMS is receiving a capital return of AU$38.0 million (NZ$40.5 million), which will be used to repay part of the Company's banking facility.
"We are very pleased to complete this partnership with QMS," said MediaWorks Chairman Jack Matthews.
"The addition of QMS' very strong out-of-home business will give MediaWorks an unparalleled portfolio of assets to deliver outstanding results to our customers."
QMS Managing Director and Group CEO, Barclay Nettlefold said: "The merged QMS NZ and MediaWorks business will be the ﬁrst in market to realise the combined power of out-of-home, radio, TV and digital as an unrivalled destination for advertisers to build brands and maximise audience reach.
"The merger will deliver compelling value for advertisers and maximise cross-platform revenue synergies for the business.
"For QMS, the merged business remains a substantial ongoing investment in the New Zealand market where the combined capabilities of QMS NZ and MediaWorks can build on their existing market positions to drive future revenue growth. The merger and capital return realise value for QMS shareholders, better positioning the Company to take advantage of compelling future investment opportunities as they arise."