SEN set to merge with Crocmedia | radioinfo

SEN set to merge with Crocmedia

Thursday 23 November, 2017

The merged businesses to be led by Craig Hutchison.

After much speculation that Pacific Star Network was to be sold, the company announced yesterday a proposed merger with Crocmedia.

Crocmedia holds AFL radio rights and distributes content to stations across Australia, including SEN and 3AW in Melbourne. 

Following the resignation of non-executive director of Pacific Star Network (which owns sports radio station SEN) and major shareholder Ron Hall, radioinfo reported suggestions that Crocmedia was set to take a controlling interest in SEN.  

Crocmedia CEO Craig Hutchison was linked to the station's CEO role, originally slated for former Collingwood chief Gary Pert, who had been on the SEN board for eight years.

In an announcement to the ASX, Pacific Star Network said both groups are currently undertaking due diligence to be completed within 30 days before entering a legally binding agreement which could happen close to Christmas eve. The deal would require the approval of Pacific Star shareholders.

The company noted after the proposed deal no shareholder would have “positive control” of the new company, which would be led by Craig Hutchison.

The announcement to the Stock Exchange says:

Pacific Star Network ('PNW') has entered into a nonbinding Term Sheet with Crocmedia Pty Ltd (‘Crocmedia’), a leading sports media content business, in relation to a proposed merger transaction. The Term Sheet provides for both PNW and Crocmedia to undertake due diligence within 30 business days, and enter legally binding final transaction documents shortly thereafter.

 

The merger would be effected by PNW issuing scrip consideration to Crocmedia shareholders, and would require the approval of PNW shareholders. No shareholder or group of shareholders wouldacquire positive control of PNW as a result of the merger. The merged group would be led by CEO elect Craig Hutchison.

 

 The PNW board cautions shareholders not to make any decisions on the assumption that a transaction will proceed.

 
 

Ahead of today's Pacific Star Network AGM, Hutchison said on his Sounding Board podcast that he was not able to comment further on the proposed transaction. He added that he could provide some comment next week on The Sounding Board’s final 2017 podcast.

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