MediaWorks confirms merger with QMS NZ
New Zealand-based radio, television and interactive media network MediaWorks has officially merged with out-of-home, digital media and production business QMS NZ.
The merger was officially confirmed in an ASX announcement published today and sees the newly combined QMS and MediaWorks become the largest multi-media advertising group in the New Zealand.
MediaWorks’ network of radio stations includes The Breeze, The Edge, Kiwi FM, Magic, More FM, LiveSport and The Rock.
The deal will see QMS will merge its NZ out-of-home, digital media and production businesses into MediaWorks and in return will receive a 40% shareholding in the expanded MediaWorks business.
Michael Anderson will continue as CEO of the combined group.
“For QMS, this merger reinforces our prudent management of assets and realises value for shareholders from our investments in New Zealand,” said chairman of QMS Media Limited Wayne Stevenson.
“The transaction will allow us to continue to create further opportunities to unlock value for shareholders and further accelerate our growth in a consolidating environment.”
The deal appears to secure the company’s future, after suffering a chequered past.
In 2011, the then-communications minister Steven Joyce was accused of having a conflict of interest after granting MediaWorks a $43 million loan guarantee for the Government to renew its licenses.
MediaWorks also spent a year in eceivership from mid-2013 to mid-2014.