CanWest Mediaworks lists at $1.65

1.00pm UPDATE

CanWest MediaWorks listed on the sharemarket at $1.65 today - a 7.8 per cent premium to the issue price of $1.53.

Canadian media giant CanWest Global Communications Corp floated off 30 per cent of its New Zealand television and radio assets including the flagship TV3 channel through the issue of 68 million shares at $1.53 each, raising $104 million.

CanWest MediaWorks will acquire the parent group's six national New Zealand radio brands -- More FM, The Edge, The Rock, Channel Z, Radio Pacific, Solid Gold -- as well as 22 regional radio station, plus free-to-air channels TV3 and C4.

CanWest, Canada's largest media company, issued the minimum number of shares under the offer and did not take up the option to issue another 13.6 million shares, despite the offer being around three times oversubscribed.

The only listed media stock of note is pay television operator Sky Network Television, majority owned by Independent Newspapers.

CanWest MediaWorks will have a market capitalisation of around $347 million.

Just 1.5 million shares were issued to public pool.

Directors and employees of MediaWorks have collectively been allotted about 650,000 shares.

MediaWorks chairman Tom Strike said he was delighted to welcome about 4000 new investors onto the share register.

"We are gratified by the strong endorsement of the company they have shown through their participation in this offer," he said.

The net proceeds of the offer and $200 million of cash borrowed under a bank five-year revolving term credit facility were used together with the issue of the 158,666,667 shares to purchase the radio and television businesses of CanWest RadioWorks Ltd and CanWest TVWorks Ltd.

RadioWorks' (the radio stations) revenue is forecast to rise to $101m in 2004 from $92.3m in 2003 and then to $104m in 2005. Its ebitda (earnings before interest, tax, depreciation and amortisation) is seen rising to $32.3m this year from $25.9m in 2003 and then to $33m in 2005.

TVWorks' revenue will rise to $126m in 2004 from $120m and then to $130.4m in 2005. Its ebitda is forecast to rise to $28.3m from $13.2m in 2003 and then to $30.5m in 2005.

The group ebida profit is picked at $60m this year from $39.1m last year and is forecast at $61m in 2005.

Murray Rutherford of Goldman Sachs JB Were, which organised the float said the stock had been the focus on the market.

"It's opened very strongly which is what we'd expect. I think the economic environment that we're enjoying at the moment will be very good for this company and that's been recognised."

- NZPA