NZME intends to appeal high court decision

Company News

by Kathy Skantzos

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.
 

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.