News: QMS QMS Media Announces Strategic Merger of QMS NZ with MediaWorks NZ

Dec 10 (Reuters) - QMS Media Ltd (QMS) :

• FINALISED TERMS FOR MERGER OF ITS NEW ZEALAND OUT-OF-HOME, DIGITAL MEDIA AND PRODUCTION BUSINESS (QMS NZ) WITH MEDIAWORKS
• TRANSACTION IS EXPECTED TO BE EARNINGS PER SHARE (EPS) ACCRETIVE FOR QMS MEDIA SHAREHOLDERS IN FY20, POST COST AND REVENUE SYNERGIES.
• QMS WILL HOLD TWO SEATS ON BOARD, WITH OAKTREE HOLDING THREE
• QMS WILL RECEIVE A CAPITAL RETURN OF ABOUT A$35M
• QMS WILL RECEIVE A 40% SHAREHOLDING IN EXPANDED MEDIAWORKS BUSINESS
• MICHAEL ANDERSON WILL CONTINUE AS CEO OF COMBINED GROUP
• FUNDS MANAGED BY OAKTREE CAPITAL MANAGEMENT, L.P (OAKTREE) WILL RETAIN A MAJORITY 60% SHAREHOLDING
• MERGER IMPLIES A BLENDED EV/EBITDA MULTIPLE OF 10X FORECAST CY18 EBITDA (PRE- SYNERGIES) FOR QMS NZ BUSINESSES