On 21 February WAN agreed to acquire Seven Media Group for $4.1 billion. The deal will create the biggest media group in Australia, to be known as Seven West Media, and will be listed on the Australian share market.
To help finance the deal, WAN will conduct a $1.15 billion capital raising. WAN placed its shares in a trading halt prior the announcement, so it will be one of the stocks to watch once the halt is lifted.
Under the new ownership structure, Seven Group Holdings (SVW) would own 29.6% of the company shares, and private equity group, Kravis Kohlberg and Roberts, would hold 12.6%.
WAN also announced its first half results, which showed a 1.3% rise in 1H11 in net profit to $50.1 million. The group declared an interim dividend of 19 cents per share.
Revenue grew 2.1% to $209.4 million, reflecting a 3.8% increase in consolidated advertising revenue.
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