Seven West Media (SWM) has acquired a 14.9% shareholding in broadcaster ARN as a strategic equity investment and will gain another 5% in a cash-settled equity swap with broker Barrenjoey.
In a statement to the ASX SWM said it is "supportive" of ARN’s current business direction and has "no intention" of launching a takeover for ARN or making an alternative control proposal of ARN competitor SCA.
SWM acquired the shares at $1.10 per ARN share, spending $50.1 million.
Billionaire Kerry Stokes, the chair of Seven, says the company has a disciplined approach to value creation in the media sector.
"We believe that this strategic holding presents strong value for our shareholders in light of sector consolidation activity," he says.
SWM chief executive James Warburton says the investment aligns with "our strategic pillar of partnering for growth".
"We look forward to continued collaboration across our two companies," he says.
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