(15 February 2010 – New Zealand) Goldman Sachs JBWere has become a significant shareholder in the New Zealand company MediaWorks, after the group launched a NZ$70 million (A$54 million) recapitalisation late last year.It has been reported that the investment bank’s stake in the media company currently sits at around 13 percent, however could rise as high as 20 to 25 percent.
The amount that Goldman Sachs invested in MediaWorks is still unknown, but the bank converted mezzanine debt, held by two Goldman funds, into equity before plunging it into the MediaWorks’ recapitalisation.
MediaWorks runs TV3, C4 and half of New Zealand’s commercial radio stations including RadioLive, The Edge, The Rock, More FM, Solid Gold and The Breeze.
Hayley Morris, Goldman Sachs JBWere spokeswoman, said the investment reflected Goldman’s favourable view of MediaWorks and willingness to support the business.
Mr Brent Harman, Chairman of MediaWorks said that the recapitalisation, combined with the restructure of the company’s banking arrangements, has placed the company on a sound financial footing. This, together with the improving ad market conditions, places MediaWorks in an excellent position for 2010 and beyond.
MediaWorks’ annual report for the year to August 2008 showed a NZ$40.3 million bottom-line loss, annual finance costs of NZ$92.8 million, total borrowings of NZ$530.4 million and an equity deficit of NZ$18.6 million. The 2009 annual report is not yet available.