The regulatory body, Australian Securities and Investments Commission (ASIC), confirmed the registration of a Scheme Booklet related to the proposed merger of Nine Entertainment and NEC Corporation. This mandatory process was a crucial step in fulfilling the conditions demanded by NEC Corporation to agree to the merger. The proposed merger of these two prominent entities signifies a landmark moment in this industry.
On 21st July, NEC Corporation (NEC) and Nine Entertainment Co. (Nine) disclosed their plans to merge, a historic move that has significant implications for the entertainment industry in Australia. Nine Entertainment is an Australian publicly-listed media company with assets in television, digital platforms and print media, and the NEC Corporation is a global leader in the integration of IT and network technologies. This announcement followed a proposal that NEC would acquire all Nine’s shares through its wholly-owned subsidiary based in Australia.
In line with the Scheme of Arrangement under the Corporations Act of 2001, NEC proposed to acquire all the issued and outstanding shares of Nine. The Scheme Booklet contains detailed information about the proposed merger, including the terms, conditions, approvals required, and the benefits and implications for both companies and shareholders.
Post approval from ASIC, the Scheme Booklet was dispatched to nine shareholders. The Scheme Booklet paints the whole picture of the proposed merger, explaining the procedures the companies need to make sure to follow, risks surrounding the process, benefits that could be derived to the shareholders, proposed timetable of the merger, background history of the companies involved and the resulting entity’s possible structure.
Crucial to this process, the Scheme Booklet also lays down the terms and conditions as proposed by NEC corporation. It reveals that the merger is dependent on a few conditions that need fulfillment. These conditions primarily include approval from the Federal Court of Australia and the shareholders of Nine.
Another significant aspect from the Scheme Booklet is the proposed timetable. After the registration of the Scheme Booklet by ASIC on 9th September, the list of essential subsequent dates was also revealed. For instance, it showed that the Federal Court of Australia hearing for the approval of the Scheme was expected on 7th October, while the dispatch of court orders to ASIC was expected on 8th October.
This monumental news hints at what the future may hold. Following the merger, the expectation is that the combined enterprise would provide a platform to accelerate digital transformation, deliver robust and reliable IT services and systems through a deep understanding of customer needs, and further innovation in technology.
The merger aligns with NEC’s global growth strategy focused on its five ‘Solutions for Society’ businesses: Public, Enterprise, Network, Data Centre and Undersea Cable, and aims to deliver sustainable growth and increased corporate value over the mid to long term.
However, the merger also throws up several intriguing questions about the future trajectory of these two companies and the implications for the entertainment industry in Australia. This amalgamation could significantly alter the marketplace by bringing an exciting blend of diverse technologies and platforms together, offering an unprecedented
