Australia media tycoon Stokes forges $2bn Seven takeover

Australian newspaper group West Australian Newspaper Holdings (Wan) has agreed to buy Seven Media Group for $2 billion, in a deal forged by tycoon Kerry Stokes that will create the country's biggest media company. Perth-based Wan will buy Seven Media Group, whose assets include Australia's highest-rating television network, from Seven Group Holdings and private equity firm Kohlberg Kravis Roberts .

Media consolidation in Australia is gathering pace and this is the latest in a string of deals - private equity firm CVC plans a $5bn float of rival television network Nine Entertainment later this year, while Southern Cross media made a bid for radio group Austereo in January. Wan plans to raise $1.08bn in new capital to fund the deal, which will create a company with a market capitalisation of about A$3.6 billion - Australia's biggest media company ahead of Fairfax . Stokes, 70, a former Perth television antenna technician who is one of the country's most powerful businessmen and the existing chairman of Wan's board, is seen as the driving force behind the deal, which consolidates his Australian media operations. He will remain as chairman of the new group. "He's been very successful. A combined traditional TV and digital media will probably be very competitive," said Tom Millner, Chief Executive at BKI Investment Co, one of Wan's top 10 investment manager shareholders.