The Macquarie Radio Network and Fairfax merger has been completed after a 4-month process of reviews and approval.
MRN has aquired 100% of the share capital of FRN in exchange for the issuance of new MRN ordinary shares to Fairfax and an equalising cash payment of approximately $18 million based on the net debt positions of FRN and MRN at completion. Existing MRN shareholders now hold 45.5%, and Fairfax hold the remaining 54.5% of the fully diluted MRN ordinary shares on issue.
The proposed ‘merger of equals’ brings together Australia’s leading news-talk radio operations which occupy number one overall ratings’ positions in Sydney (MRN’S 2GB) and Melbourne (Fairfax’s 3AW).
On 27 February 2015, the Australian Competition and Consumer Commission announced that it would not oppose the transaction.
MRN has provided the ACMA with an undertaking to divest Radio 2CH in Sydney and Radio 4LM in Mt Isa.
MRN directors Kate Thompson, Maureen Plavsic and Max Donnelly have stepped down from the Board of MRN earlier today.
The Board of the newly merged entity will comprise existing members Russell Tate (Chairman) and Jack Singleton, two Fairfax nominees, Greg Hywood and James Millar AM, who were appointed today, and one yet to be determined independent Director, who is expected to be appointed shortly after completion, subject to ACMA approval being received.