New Zealand media and entertainment business NZME (ASX:NZM) has announced it intends to appeal a New Zealand high court decision to decline a merger of the business with Fairfax Media’s (ASX:FXJ) New Zealand business Stuff Limited.
The New Zealand Commerce Commission declined to clear or authorise the merger in May 2017, which was later unsuccessfully appealed in October 2017.
Findings of the high court revealed that the commission had understated the public benefits from the proposed merger.
The high court’s findings increase the range of estimated benefits to the public from the transaction to $133 million to $209 million, which is more than the commissions estimated range of $41 million to $204 million.
NZME says appealing the high court’s decision is in the best interest of the company, its shareholders and consumers.
Shares in NZME (ASX:NZM) last traded on Friday at $0.76.