NZME requests urgent Government action

MARKET ANNOUNCEMENT


11 May 2020

NZME requests urgent Government action to protect news
media and jobs in New Zealand given significant adverse
impacts of COVID-19 on the sector

AUCKLAND, 11 May 2020: NZME Limited (NZX: NZM, ASX: NZM) (“NZME”) has written to
the Government today seeking urgent legislation authorising NZME, or its nominee, to acquire
the shares in Stuff Limited by 31 May 2020. NZME is not seeking financial assistance from
Government to support the purchase of Stuff.
NZME is taking these steps to advance its offer to acquire Stuff from Fairfax Corporation Pty
Limited, a wholly owned subsidiary of ASX-listed company Nine Entertainment Co. Holdings
Limited (ASX: NEC) (“Nine”) for $1*. On 23 April 2020, NZME and Nine agreed an exclusive
negotiation period. With Government support, NZME is aiming to complete the transaction by
31 May 2020.
NZME has been engaging with the New Zealand Commerce Commission (the “Commission”)
and has filed for clearance today requesting that the Commission consider the application under
urgency. NZME fully respects the Commission’s processes. NZME recognises, however, that
the clearance process involves certain necessary steps and those steps can take some time,
even where an application has been sought under urgency.
NZME believes that the New Zealand media sector is too small for the current number of quality
participants and consolidation is urgent in the face of dramatically declining advertising revenue
and current general economic conditions. NZME continues to believe that it is the best owner
for Stuff as it is best placed to preserve mastheads, newsrooms and jobs. NZME considers that
in the current New Zealand media landscape, NZME’s acquisition of Stuff will not substantially
lessen competition in any market.
NZME’s proposed acquisition of Stuff is important to the continued operation of a robust fourth
estate and plurality of voice in this country. If approved, the acquisition should lower the costs
of producing New Zealand news by combining NZME and Stuff’s business operations, with those
savings supporting the future of New Zealand journalism by a local, committed national news
media outlet.
ENDS

Authorised by the Board of NZME Limited.

*Excluding certain non-media assets but including Stuff’s material trading assets and liabilities.