Seven West Media buys nearly 20% stake in ARN Media

The news: Broadcaster Seven West Media says it has no intention of launching a takeover bid after acquiring shares in ASX-listed radio business ARN Media to become its largest shareholder.

The numbers: Seven said in an ASX statement on Monday it has acquired a 14.9% stake in ARN at $1.10 per share. It also acquired another 5% in the company via an equity swap via Barrenjoey Markets. ARN Media shares closed at 84 cents each on Friday.

The context: The Kerry Stokes-backed Seven said its shareholding in ARN was a “strategic equity investment” and it has an interest in ensuring the company’s continuing and long-term success because of its longstanding commercial partnerships with ARN. The move comes just weeks after ARN last month made a bid for its main rival, Southern Cross Austereo. Seven said it also has no intention of launching a takeover bid for Southern Cross. ARN is part-owned by News Corp Australia, which has a 13% stake in the company.