Fairfax Media
(ASX:FXJ) has announced that its NZ business has signed an agreement to merge with New Zealand Media and Entertainment
(ASX:NZM).
This merger will depend on number of conditions, such as obtaining approval from the New Zealand Commerce Commission, with a decision expected by 15 March 2017.
As part of this deal, NZME will acquire all the shares in Fairfax New Zealand for NZ$55 million in cash. In order to finance this deal, NZME will increase its bank facilities to $250 million. NZME will also have to issue shares equal to 41% of its shareholding to Fairfax Australia.
The companies are expecting to merged business will reach an audience of 3.7 million New Zealanders across print, digital and radio channels, generate significant synergies and increase their number of brands.
Fairfax Media reported a net loss of $883.2 million at 30 June 2016.
