KKR selling Seven West Media
"KKR has been a great partner of Seven for nearly seven years. We understand their decision to sell their shareholding in the company. We have worked closely together over the years in building Seven Media Group and then working together with West Australian Newspapers to create Australia's largest and best-performing media company, Seven West Media," said Kerry Stokes, chairman of Seven West Media.
"This decision was a tough one. KKR has been a shareholder in and partner with Seven for seven years. KKR has enjoyed a very strong relationship with Seven since December 2006 and its KKR's investment period is 5-7 years, and this investment is at the longer end of that period," said Justin Reizes from Kohlberg Kravis Roberts & Co.
KKR's December 2006 deal was its first media investment in Australia. Seven West has struggled to make revenue from advertising and it has been on a cost-cutting way to offset falling advertising revenues. Seven West Media went public in 2011 through a merger with West Australian Newspapers. The group is 33 percent owned by Seven Group Holdings. ■