Three Owners, MediaWorks, Will Take Over the New Zealand Arm of Australian QMS Quality Management System

MediaWorks, owner of the television channel Three, and the New Zealand branch of the Australian media company QMS will merge to form a single company by the end of June.

The merged company will be majority-owned by Oaktree, US-based private equity firm MediaWorks, and QMS, listed on ASX, holding a "significant but non-controlling interest".

The agreement remains subject to certain conditions, including binding final terms, but it was agreed that MediaWorks' current managing director, Michael Anderson, would lead the company.

The Australian and New Zealand media announced an agreement last month between companies, but it was assumed that QMS was more likely to buy MediaWorks.

READ MORE: MediaWorks, the owner of Channel Three, reportedly surrounded by Australian advertising company QMS

QMS is valued at A $ 310 million (NZ $ 330 million) on ASX and its main activity is to provide outdoor advertising in Australia and New Zealand, including on sports fields. .

Although relatively modest, the overall activity of the Transtasmanian SMQ is profitable compared to most media companies and has a net profit of A $ 18 million and an operating profit of A $ 49 million for a single figure. $ 204 million at the end of June.

QMS has not separated its results for Australia and New Zealand in its annual report published in October.

However, the New Zealand media market experienced milder conditions, with growth in its outdoor advertising business slowing year-over-year and QMS NZ's performance in line with the market.

"A decline in business confidence has led to a softening of New Zealand market conditions, compared to years of stronger growth in previous years," he said.

QMS shares rose 2.5% to AUD0.95 following the announcement.