Oaktree buys out banks for majority share of MediaWorks
Westpac New Zealand and Royal Bank of Scotland exit stage left.
Hot Topic
Hawke’s Bay
LA-based private equity firm Oaktree Capital now has a 77.83% stake in MediaWorks, having bought out Westpac New Zealand and Royal Bank of Scotland via its vehicle Tokyo Opportunities B.V.
The two banks had partially funded private equity firm Ironbirdge’s 2007 purchase of the company and became shareholders when they converted their debt into equity following MediaWorks’ 2013 receivership.
Westpac New Zealand held 21.9% and Royal Bank of Scotland, 14.6%.
The banks’ exit means MediaWorks now has just three shareholders: Oaktree, TPG (15.69%) and Bain Capital subsidiary Minot Light APAC (6.49%).
In a statement, MediaWorks Group chief executive Mark Weldon said. “Oaktree is an experienced, long-term investor into media businesses. They are a serious, very well managed investment company with a very strong reputation and track record, including a very successful investment into Nine in Australia. We are very happy to have Oaktree as a majority owner of this business."
The appointment of Mr Weldon, former boss of the NZX, last August fuelled speculation MediaWorks is being readied for an initial public offering.
The 2014 financial statements show the board and senior management have been issued shares as part of an incentive compensation scheme, which will be triggered on an "exit event".
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Oaktree buys out banks for majority share of MediaWorks
47231