West Australian Newspapers Holdings (ASX:WAN) and Seven Media Group merger will be backed by shareholders. They’re the brave assertions from media boss Kerry Stokes.
The $4 billion merger will be voted on next month. Mr Stokes is the chairman of both Seven and West Australian Newspapers, if the merger is successful it will be the second major deal he has completed in the past year.
It follows the merger of Seven Network and his earthmoving equipment firm WesTrac. The combined group will have a $2 billion debt. It will be paid down from the dividend reinvestment plan.
In the half year to December 31, 2010 West Australian Newspapers Holdings generated a net profit of $50 million.
WAN Price at posting:
$5.22 Sentiment: None Disclosure: Held
