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Crocmedia and Pacific Star Network confirm merger details

Pacific Star Network, the owner of Melbourne sports radio station SEN, yesterday released to the ASX details of its plan to merge with sports media company Crocmedia.

In the $23.9 million stock-only deal, which was first announced last November, Crocmedia founder Craig Hutchison will be CEO and the largest shareholder in the merged company with a 24.4% stake.

Crocmedia founder Craig Hutchison will be CEO of the merged business

Crocmedia holds radio rights for regional AFL radio coverage along with the A-League and W-League games, with options to broadcast Socceroos and Matilda’s home matches. The privately-owned business includes branded content, events and creative services arms.

Along with sports radio station SEN, Pacific Star Network also owns Melbourne-based station Classic Rock Radio and operates three digital-only radio stations, Aussie, Koool and Greek digital radio station Rythmos. The company also publishes Frankie Magazine and Inside Football.

Last week SEN announced former ABC broadcaster Gerard Whateley would join the station as the ‘chief sports caller’.

Chairman of Pacific Star, Craig Coleman, said in a statement to the ASX: “The proposed merger is transformational for PNW which, if approved, would create a compelling platform for future growth.”

In the twelve months to the end of October 2017, Pacific Star reported unaudited revenue of $22.7 million with an EBITDA of $3.5 million, while SEN claimed revenue of $25.7 million and an EBITDA of $3.9 million for the same period.

Should the transaction be successful after being voted on by Pacific Star shareholders in March, investment company Viburnum Funds will be the second largest shareholder with 23.1% of the combined. Fairfax Media will hold 3.9% of the merged business.

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