More details have emerged of the merger plan between NZME and Fairfax New Zealand -with the deal involving the purchase of millions of dollars of Fairfax assets. Mumbrella reports NZME is set to pay NZ$55 million to acquire all shares in Fairfax NZ.
The deal, which is subject to approval from the New Zealand Commerce Commission, will see a wholly owned NZME subsidiary pay cash for Fairfax NZ’s assets, and issue Fairfax Australia with a 41% share in the company. However that arrangement is subject to the amount of debt staying the same.
Fairfax New Zealand’s assets include stuff.co.nz, a share of neighbourly.co.nz and more than 60 metro, Sunday, regional and community newspapers. NZME’s assets include the New Zealand Herald and six regional daily papers, the NZME radio network and e-commerce and digital classified sites GrabOne, HeraldHomes and driven.co.nz.
In May, NZME’s former parent company APN News & Media confirmed it was in talks with Fairfax Media to “explore” a merger between its New Zealand business NZME and Fairfax New Zealand.
Fairfax Media NZ managing director Simon Tong said in a statement: “The combination of NZME and Fairfax NZ brings together leading and complementary brands in news, sport and entertainment content across multiple channels. Both businesses have a tradition of innovation and a combined business allows us to continue to invest in quality New Zealand journalism – ensuring a strong future for storytelling by Kiwis, about us, and for us.”
The deal is subject to NZME shareholder approval, finance and approval from the NZCC and consent from the New Zealand Overseas Investment Office. A final NZCC decision is expected on or before March 15, 2017.
NZME chairman Sir John Anderson said: “The announcement today is the culmination of a period of substantial effort by both the NZME and Fairfax management teams.
“The next stage of this process is now focused on the completion of the merger, starting with putting the deal to a shareholder vote in October/November. The directors are pleased to recommend the merger to shareholders with a notice of meeting and explanatory memorandum to be distributed to shareholders in October.”
Mumbrella editor, Miranda Ward reports prior to all conditions of the merger being satisfied, NZME and Fairfax NZ will continue to operate as independent businesses.
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