- 01SEG to acquire MediaWorks NZ for NZ$130m (A$107.4m).
- 02Completion 1 Oct 2026; approvals; EPS +59%.
- 03Funding: cash + A$87.6m CBA debt; A$11.7m placement.
Sports Entertainment Group (ASX: SEG) has agreed to acquire 100% of New Zealand audio business MediaWorks for an enterprise value of NZ$130 million, equivalent to about A$107.4m, on a cash and debt-free basis.
SEG expects the acquisition to lift earnings per share by 59% before synergies, assuming its A$11.7m placement is completed and participation in the planned share purchase plan is limited, with about A$5m of annual synergies identified.
The deal would create a trans-Tasman audio, digital and entertainment group reaching more than 5 million weekly listeners, with MediaWorks holding about 59% audience share among New Zealand listeners aged 25 to 54 and its rova platform attracting more than 540,000 monthly active users.
Completion is targeted for 1 October 2026 subject to customary conditions including New Zealand Overseas Investment Office approval, with SEG funding the purchase through existing cash, debt, and an equity raising.
Trans-Tasman Scale
MediaWorks generated A$131.2m of revenue and A$18.1m of EBITDA in the 12 months to 30 June 2026, while the combined businesses would have produced pro forma EBITDA of about A$36.1m before synergies and A$41.1m after them.
The acquisition price represents about 5.1 times MediaWorks’ 2026 calendar-year budgeted EBITDA of NZ$25.4m, reducing to about 4.2 times after identified synergies.
“The acquisition of MediaWorks is a transformational step for SEG [that] gives us immediate market leadership in New Zealand, a highly complementary content offering, and a genuine platform to extend our sport, digital, and entertainment capability across the Tasman,” chief executive officer Craig Hutchison said.
MediaWorks reaches about 2.4 million weekly listeners and its music and entertainment radio operations are expected to complement SEG’s Australian sports content, while existing chief executive officer Wendy Palmer and her management team are expected to continue leading the New Zealand business.
“We are impressed by the MediaWorks team and look forward to working with Wendy Palmer and her team as we bring the two businesses together,” Mr Hutchison added.
Debt and Equity Funding
SEG will combine existing cash reserves with a new A$87.6m senior debt facility from Commonwealth Bank of Australia (ASX: CBA), with definitive facility documents to be completed before acquisition settlement.
A placement targeting up to about A$11.7m will issue approximately 42 million new shares at A$0.28 each, representing an 8.2% discount to SEG’s last traded price and a 14.6% discount to its 15-day volume-weighted average price.
SEG also plans a share purchase plan targeting up to A$2m, allowing eligible shareholders to apply for up to A$30,000 of shares at the same A$0.28 issue price, with proceeds from the equity raisings intended to partially repay or reduce drawings under a bridging component of the debt facility.
Leverage is expected to be about 1.9 times pro forma EBITDA at completion including the identified synergies, with SEG outlining a pathway to approximately 1.2 times within two years through free cash flow generation, available New Zealand tax losses and synergy delivery.
The acquisition and equity raising have prompted SEG to terminate its on-market share buy-back program with immediate effect.
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