SEG Raises A$14.6 Million Placement to Fund MediaWorks Acquisition

Oversubscribed Placement Strengthens SEG’s Balance Sheet

Sports Entertainment Group (ASX:SEG) has closed an oversubscribed placement raising approximately A$14.6 million at A$0.28 per share, exceeding initial targets. The placement was supported by a mix of existing shareholders and new institutional investors, reflecting strong market confidence ahead of SEG’s acquisition of MediaWorks, New Zealand’s largest audio business. Of the total, about A$11.7 million was issued under SEG’s existing placement capacity, with a further A$2.9 million subject to shareholder approval.

Transformative Acquisition Expands Trans-Tasman Reach

The capital raise is earmarked to fund SEG’s acquisition of MediaWorks Topco Limited, which commands a dominant 54% market share of New Zealand’s radio revenue and reaches roughly 2.4 million weekly listeners. The acquisition will create a combined trans-Tasman audio and digital platform with pro forma FY26 revenue of approximately A$284 million and EBITDA of A$36.1 million, before synergies. Post-synergies, SEG expects EBITDA to reach A$41.1 million.

SEG reported a record FY26 with unaudited revenue of A$152.8 million (up 38% on FY25) and normalized EBITDA of A$18.0 million (up 71%). The acquisition is expected to deliver an EPS accretion of around 68% on a pro forma FY26 basis, underscoring the deal’s accretive nature.

Financial Structure and Debt Position

The acquisition is funded through a combination of an A$87.6 million debt facility, the equity placement, and existing cash reserves of about A$11 million. Pro forma net debt to EBITDA is forecast at approximately 1.9x immediately post-completion, with a clear pathway to reduce this to around 1.2x within two years, supported by identified annual synergies of approximately A$5 million.

SEG’s balance sheet remains robust, finishing FY26 with a cash balance of A$24 million and modest debt of A$10 million. The new debt facility includes an amortising term loan and a bridge facility that will be retired by the equity raising.

Share Purchase Plan Opens to Eligible Shareholders

Alongside the placement, SEG will offer a non-underwritten Share Purchase Plan (SPP) to eligible shareholders in Australia and New Zealand, targeting up to A$2 million. Shareholders can apply for up to A$30,000 worth of shares at the same price as the placement, with the company reserving discretion to scale back applications if demand exceeds the cap.

The SPP opens on 21 August 2026 and closes on 11 September 2026, with shares expected to be allotted by 18 September.

Strategic Rationale and Growth Opportunities

SEG’s Managing Director Craig Hutchison highlighted the strategic significance of the acquisition, describing it as a transformational step that creates a leading trans-Tasman audio, digital, and entertainment group with significant scale and growth potential. MediaWorks’ strong market position, iconic brands, and proprietary digital platform rova; with 540,000 monthly active users; complement SEG’s existing assets and broaden its audience reach to over 5 million weekly listeners.

The combined entity is positioned to leverage cross-platform content sharing, expanded advertising bundles, and digital monetisation initiatives. SEG also plans to capitalise on opportunities in sports content, digital audio, TV production, and experiential fan engagement across Australia and New Zealand.

Risks and Next Steps

The acquisition remains subject to customary conditions, including shareholder approval for the placement shares exceeding existing capacity. Foreign exchange exposure arises from MediaWorks’ New Zealand dollar operations, and integration risks persist as SEG merges operations across two countries. Market dynamics in advertising spend and evolving media consumption habits also present ongoing challenges.

Completion is targeted for 1 October 2026, with SEG now well capitalised to execute the deal and pursue the anticipated synergies.