Stokes plans A$2-bn merger

Billionaire Kerry Stokes will combine West Australian Newspapers Holdings with Seven Media Group in a $2 billion takeover, creating the nation’s biggest media company with the top-rated TV network and more than 25 magazines.

West Australian will acquire Seven Media for A$1.98 billion ($2 billion) from Seven Group Holdings and buyout firm KKR & Co, the companies said today. Including assumed debt, the A$4.09 billion offer would make it the biggest ever purchase of Australian media assets, according to data compiled by Bloomberg.

The publisher of Perth’s sole daily newspaper will add TV stations across Australia’s five largest cities and the country’s second-most visited internet portal in its purchase of Seven Media. The move follows more than A$400 million of investments announced by rival tycoons James Packer, Lachlan Murdoch and Gina Rinehart since October as advertising sales are projected to grow to a record A$13.9 billion this year.