Prime Media shareholders vote in favour of Seven West aquisition

The sale of Prime represents further consolidation of Australia's media market. Picture: Shutterstock
The sale of Prime represents further consolidation of Australia's media market. Picture: Shutterstock

Regional television network Prime has officially been swallowed up by the Kerry Stokes-backed Seven West Media.

Prime Media shareholders on Thursday overwhelmingly voted in favour of the network being acquired by the major media outlet in a $132 million takeover.

The asset sale of $131.88 million is planned to be returned to Prime shareholders at 36 cents per share, which Prime chair Cass O'Connor said was a significant premium against current metrics.

The sale of Prime represents further consolidation of Australia's media market.

Both an asset sale resolution and proposed distribution resolution had to pass for the acquisition.

Ms O'Connor and the board were in favour of the sale to Seven West, noting no other significant offer had been put to the company.

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"At the date of this meeting, no superior proposal has emerged," Ms O'Connor said in her address at the extraordinary general meeting.

"As detailed in the explanatory memorandum, a number of major shareholders holding an aggregate over 40 per cent of the shares indicated their support for the transaction prior to the issuance of the explanatory memorandum."

The asset resolution passed in favour with a shareholder vote of almost 95 per cent.

Over 95 per cent voted in favour of the proposed distribution resolution, which will see the capital of Prime return to shareholders.

A third resolution was passed to change the remaining shell company to PRT Company Limited, which would be wound up following the end of trade of the company on January 25.

On December 9, the Australian Competition and Consumer Commission announced it would not oppose the deal, citing it would not deteriorate the competitiveness of the country's highly concentrated media market.

"We received minimal engagement from market participants including rival media companies, and feedback received indicated there had been no material changes in the relevant markets," ACCC chair Rod Sims said.

The majority of Prime's broadcast is supplied by Seven West Media.

Seven West Media proposed to take over Prime in November.

No questions were posed by shareholders on the three resolutions posed during the EGM.

The sale will be inked on December 31 and trading will be paused on January 25.

On January 21, shareholders will receive their distributions.

This story Seven West gobbles up Prime Media first appeared on The Canberra Times.