Global law firm Norton Rose Fulbright is advising 1116 SEN radio station owner Pacific Star Network Limited on its merger with Crocmedia.
The Norton Rose Fulbright team assisted in the negotiation of the term sheet, drafted all agreements giving effect to the arrangement, conducted full legal due diligence of Crocmedia and is currently drafting relevant market notices and announcements.
The merger, which the independent expert has determined will create a group worth roughly $76.6 to $88.5 million, will see Pacific Star Network acquire 100 per cent of the equity in Crocmedia in exchange for issuing Pacific Star Network shares to Crocmedia shareholders and executives.
A further $10.0 million will be raised to strengthen the balance sheet, with Viburnum Funds Pty Ltd to cornerstone the placement. Viburnum currently holds 19.5% of Pacific Star Network shares.
The merger is subject to shareholder approval at a general meeting expected to be held in March 2018.
Pacific Star Network is an ASX listed media company, with two Melbourne AM commercial stations, three digital only radio stations, as well as publishing five publications through its subsidiary, Morrison Media Services Pty Ltd.
Its commercial station 1116 SEN delivers sports radio across the Melbourne metropolitan area and has a reputation for live broadcast of the AFL.
Crocmedia boasts radio shows broadcast to over 200 stations around Australia and New Zealand and is also known for its AFL live broadcast. It is Australia’s only independent syndicator of sports content, producing approximately 130-140 hours of radio per week.
Norton Rose Fulbright partner James Stewart, who is leading the team advising on the transaction, commented:
“The merger is a great opportunity to Pacific Star Network and Crocmedia to combine and create a sports content and entertainment business capable of delivering brand stories to national, metropolitan and regional audiences. The combination of both businesses will produce synergies and opportunities that will transformational for the enlarged business moving forward.”
Partner James Stewart was supported by special counsel Simon Meagher and lawyers Sai Ma and Tarrant Sewell.