QMS receives capital return of $38m after merger with Media Works in NZ

Outdoor advertising company QMS has completed its New Zealand merger with independent radio, TV and digital business Media Works.

The merged entity now has the largest audience in New Zealand, and has also entered an unconditional agreement to acquire ETC Media’s premium Christchurch digital billboard portfolio, adding 12 large-format digital billboards to its existing portfolio, the company said.

QMS and Media Works’ merger builds the network share for the final entity

QMS will hold a 40% interest in the merged business, with a market network extending to Auckland, Wellington, Christchurch, Whangarei, Hamilton, Tauranga, Rotorua and New Plymouth. QMS will hold two seats on the five-member board.

QMS will receive a capital return of $38m from the merger, which will be used to repay the business’ banking facility.

QMS managing director and group CEO, Barclay Nettlefold said: “The merged QMS NZ and Media Works business will be the first in market to realise the combined power of out-of-home, radio, TV and digital as an unrivalled destination for advertisers to build brands and maximise audience reach. The merger will deliver compelling value for advertisers and maximise cross-platform revenue synergies for the business.

“For QMS, the merged business remains a substantial ongoing investment in the New Zealand market where the combined capabilities of QMS NZ and Media Works can build on their existing market positions to drive future revenue growth. The merger and capital return realise value for QMS shareholders, better positioning the Company to take advantage of compelling future investment opportunities as they arise.”

Media Works chairman, Jack Matthews, said, “We are very pleased to complete this partnership with QMS. The addition of QMS’s very strong out-of-home business will give Media Works an unparalleled portfolio of assets to deliver outstanding results to our customers.”

Last month, QMS reported a 65% profit climb to $16.5m.


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