An independent expert, Kroll Australia, hired by SCA has found that the takeover of Seven West Media is, in the absence of a superior proposal, in the best interests of shareholders in the audio company.
Seven West is waiting on its own independent expert report.
SCA directors say the deal is expected to conclude no later than early December.
“SCA shareholders are encouraged to read the Independent Expert’s Report and the accompanying materials in full (and seek professional advice if required),” the SCA directors told the ASX.
“However, SCA shareholders do not need to take any action.”
The deal combines two businesses with "strong positions" in the Australian advertising market across their free-to-air television, streaming, audio, digital and publishing assets.
The combined group would have combined revenue of $1.777 billion and have a market capitalisation of $417 million.
SCA shareholders would end up owning 50.1% of the new entity and SWM shareholders 49.9%.
The independent expert report said the merger has strategic benefits including a more diversified portfolio, with operations across TV, radio, print and digital platforms servicing major market segments.
And the deal would allow a combined group to leverage audience crossover to improve content and user experience, also offering advertisers improved analytics and targeted marketing.
The greater diversification and size would give an enhanced ability to withstand structural shifts in the advertising market and mitigate the impact of cyclical downturns in any single market, the report said.
“Other potential benefits of scale including likely improved negotiating power with suppliers and customers and improved offerings to advertisers through its greater national presence and brand strength,” the report said.
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