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On December 10, 2018, QMS Media Limited (ASX:QMS) has made an announcement by issuing a press release which covers information related to the merger of its New Zealand (NZ) business. As per the press release issued, the companyâs New Zealand business would be merging with the MediaWorks. Once the merger gets completed, QMS would be eligible for having a 40% stake in regard to MediaWorksâ expanded business. However, the funds which are being handled by the Oaktree Capital Management would still be having the 60% stake. With respect to the capital returns, QMS would be getting around A$35 million which would improve the financial flexibility of the company. However, this capital return would be achieved only once the financing terms get finalized. The completion of the transaction has to get through the finance approval along with some other conditions.
As per the press release which was issued today, the merger transaction is expected to be wrapped up by Q2 of CY2019. The press release also stated that QMS would be getting two seats and the Oaktree Capital Management would be getting the three seats on the Board. The top management of QMS Media reflected favourable views in regard to the transaction. The management of the company stated that, as a result of the transaction, the shareholders would be benefited, and the company would also be able to witness favourable growth momentum. The strong position of the QMS New Zealand business would be further helped by the MediaWorks as latterâs management have strong experience. The present Chief Operating Officer or CEO of MediaWorks named Michael Anderson would be combined groupâs CEO.
The group which would be formed by the help of the merger would be highly beneficial for the advertisers. Mr. Anderson stated that the proposal of the merger has managed to witness favourable response from the clients. He also reflected positive outlook because of the merger and stated that they would be focusing on local solutions for the clients as well as towards local content. Talking about the advisers, it would be meaningful to mention that Chapman Tripp, as well as CLSA, would be advising the QMS while MinterEllisonRuddWatts, as well as UBS, would be advising the MediaWorks with respect to the transaction.
Let us quickly understand how the stock of QMS Media has performed today, i.e. December 10, 2018. The stock price of the company had concluded the day on the negative note. The stock price of QMS Media Limited settled at A$0.930 per share which implies that the stock has witnessed a fall of A$0.020 per share or 2.105%. The market capitalization of QMS Media Limited stood at $309.5 million.
The annual dividend yield of QMS Media stood at 2.32%. From the past few months, the stock has been delivering the negative returns. Over the past six months, it has delivered the return of -15.93%. However, in the past one month and three months, it delivered -3.06% and -2.56%, respectively.
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