West Australian Newspaper Holding to take over Seven Media – Aus$4.1bn deal

According to a report by Reuters, West Australian Newspaper Holdings (WAN) is to takeover Seven Media Group from Kerry Stokes and private equity group Kohlberg Kravis Roberts (KKR). The A$4.1 billion deal involves issuing shares, repaying a loan and taking on debt.

WAN will raise A$1.154 billion to fund the acquisition and will combine its newspaper interests with Seven Media’s television network and magazines businesses.

KKR will hold a 12.6 percent stake in the new combined group, down from 45 percent in Seven Media while Stokes’ Seven Group Holdings will hold 29.6 percent in the combined entity versus 45 percent in Seven Media.

Stokes’ Seven Group will received A$1.081 billion in WAN shares at $5.99 per share and A$250 million in convertible preference shares for a total value of about A$1.3 billion under the deal.

WAN would also repay an existing A$650 million loan owed by Seven Media to Seven Group.

KKR bought a 50 percent stake in Seven for A$3.2 billion in 2006 at the peak of the buyout boom and has since trimmed its stake to 45 percent following a period of losses that forced Stokes to write down his shareholding in Seven Media to zero.

Read the rule story on Reuters