Kroll has given its endorsement to the proposed merger between Southern Cross Media Group and Seven West Media, determining that the arrangement is “fair and reasonable” and ultimately beneficial for Southern Cross shareholders. Kroll served as the independent expert assessing the deal. Southern Cross Media Group operates regional radio and television stations across Australia. Seven West Media is one of Australia’s leading media companies, with a large presence in broadcast television and digital platforms.
The proposed merger, initially announced in September, is structured to provide an equitable ownership split, with Southern Cross shareholders holding 50.1 per cent and Seven West Media shareholders holding 49.9 per cent. This split is based on comparable valuations of both entities. The merged group is projected to have a pro forma revenue of $1.96 billion and an EBITDA of $233 million for the financial year 2025. The deal is expected to yield annual synergies of $25 to $30 million within the first two years following completion.
The integration of Seven West Media and Southern Cross aims to create a major player in the Australian media landscape, combining TV, radio, and digital streaming assets. By combining Seven’s 7plus platform with Southern Cross’s LiSTNR app, the merged company intends to strengthen its position against global media competitors. Kroll stated, “We consider the financial terms of the Scheme are fair to Southern Cross shareholders.”
Seven West Media shareholders are slated to vote on the proposed scheme in the coming months, marking a key step toward finalising the merger. The endorsement from Kroll is a significant milestone, indicating that the financial terms of the deal are considered fair to Southern Cross shareholders.
