Australia-based radio broadcaster Macquarie Media Ltd. is recommending its shareholders to accept the A$1.46 per share off-market takeover bid made by Nine Entertainment Co. Holdings Ltd. in August.
In a Sept. 13 target's statement, the independent directors of Macquarie Media unanimously recommended that in the absence of a superior proposal, Nine's takeover bid should be accepted by shareholders. An independent expert appointed by the company, PricewaterhouseCoopers Securities, concluded that the offer is reasonable and fair to Macquarie Media shareholders.
Among the other reasons suggested for accepting the takeover bid, the statement notes that the offer implies an enterprise value EBITDA multiple of 10.2x. Shareholders can opt to accept the offer, sell their shares on-market or reject the offer.
Nine Entertainment, which holds a 54.44% stake in Macquarie Media, is making the takeover offer through its wholly owned subsidiary Fairfax Media Ltd. The offer price of A$1.46 per share values Macquarie Media at A$275.4 million, including the payment of its August dividend and net debt of A$22 million. Nine is required to get 90% shareholder approval.
The bid from Nine is due to close at 7 p.m. Sydney time on Oct. 14.
