Sports Entertainment Group (ASX: SEG) Raises A$14.6 Million for MediaWorks Deal

Sports Entertainment Group has secured binding commitments for approximately A$14.6 million through an oversubscribed share placement.

The company will issue about 52.3 million new shares at A$0.28 each. Existing shareholders joined new institutional and professional participants in the raising.

Approximately A$11.7 million will be issued under SEG’s existing placement capacity. A further A$2.9 million remains subject to shareholder approval.

The proceeds will help fund SEG’s proposed acquisition of New Zealand audio company MediaWorks. That transaction would create a trans-Tasman audio and digital platform reaching more than five million people weekly.

Pricing and settlement structure

The placement price represents an 8.2% discount to SEG’s last traded price on August 11. It is also 14.6% below the preceding 15-day volume-weighted average price of A$0.328.

Around A$9.8 million, covering approximately 35 million shares, is scheduled to settle on August 19. Allotment and normal trading are expected to begin the following day.

Another A$1.9 million, representing about 6.9 million shares, will settle on a deferred basis. SEG intends to waive the shareholder-approval condition attached to that subscription.

The A$2.9 million oversubscription covers approximately 10.4 million shares. Those shares require approval under ASX Listing Rule 7.1 at a future general meeting.

If approved, their issue is expected three business days after the shareholder vote. All placement shares will rank equally with SEG’s existing ordinary shares.

MediaWorks changes the financial profile

SEG agreed to acquire MediaWorks for NZ$130 million, equivalent to approximately A$107.4 million at the stated exchange rate. Completion is targeted for October 1, 2026.

MediaWorks is described as New Zealand’s largest audio business and third-largest advertising platform across all media. It reaches about 2.4 million weekly listeners and has more than 6,000 advertiser relationships.

SEG now expects the combined group to generate pro forma revenue of approximately A$282 million. Pro forma EBITDA is estimated at A$36.1 million before synergies and A$41.1 million after identified synergies.

The company expects earnings-per-share accretion of approximately 68% on a pro forma FY26 basis. That calculation follows the expanded placement announced this week.

SEG forecasts pro forma net debt to EBITDA of about 1.9 times after A$5 million of identified annual synergies. It has outlined a pathway to approximately 1.2 times within two years.

Record year precedes acquisition

The acquisition follows unaudited FY26 revenue of A$152.8 million, up 38% from FY25. Normalised EBITDA increased 71% to A$18 million.

Normalised net profit after tax was A$6.6 million, while normalised earnings were 2.3 cents per share. These figures provide the operating base for SEG’s larger post-acquisition structure.

However, completion remains subject to a condition precedent outside SEG’s control. The company also identified integration, debt, foreign-exchange and synergy-delivery risks.

Share purchase plan next

Eligible Australian and New Zealand shareholders will receive a non-underwritten share purchase plan targeting up to A$2 million before costs.

Participants can apply for up to A$30,000 of shares at the same A$0.28 price. The plan is expected to open August 21 and close September 11.

Shares issued under the plan are expected by September 18. The board may scale back applications or accept oversubscriptions, subject to applicable rules.