SEG’s A$14.6m placement oversubscribed as MediaWorks acquisition funding locks in
Sports Entertainment Group Limited (ASX:SEG) has confirmed its institutional placement, launched on 12 August 2026, closed oversubscribed with binding commitments of approximately A$14.6 million at A$0.28 per New Share.
Proceeds will contribute to funding SEG’s acquisition of MediaWorks, a move the company says will create a leading trans-Tasman audio and digital platform across sport and entertainment, reaching a combined weekly audience of over 5 million people.
The oversubscribed placement drew support from both existing shareholders and new institutional and professional investors. The strong demand has provided additional balance sheet flexibility as the company progresses towards completing the acquisition.
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Inside the placement structure and pricing
With demand exceeding SEG’s existing placement capacity under ASX Listing Rule 7.1, the ~A$14.6 million raise splits into two broad components:
- Approximately A$11.7 million (~41.9 million New Shares) to be issued under existing placement capacity pursuant to ASX Listing Rule 7.1
- Approximately A$2.9 million (~10.4 million New Shares) to be issued subject to shareholder approval at a general meeting
The New Shares carry a fixed price of A$0.28, representing an 8.2% discount to the last traded price on 11 August 2026, and a 14.6% discount to the 15-day volume weighted average price (VWAP) of A$0.328 per share prior to the placement.
All New Shares issued under the placement will rank equally with SEG’s existing fully paid ordinary shares from their respective dates of issue. Bell Potter Securities Limited and PAC Partners Securities Pty Ltd are acting as Joint Lead Managers and bookrunners.
| Tranche | Amount (A$m) | New Shares (approx) | Settlement / Condition |
|---|---|---|---|
| Tranche 1 | ~$9.8m | ~35.0m | Settles 19 Aug, trades 20 Aug 2026 |
| Oversubscriptions | ~$2.9m | ~10.4m | Subject to shareholder approval at GM |
| Deferred settlement | ~$1.9m | ~6.9m | Deferred, same time as post-GM shares (SEG intends to waive the shareholder approval condition) |
A record FY26 sets the platform for the deal
The raise follows a record FY26 for SEG, providing the financial backdrop that helped underpin institutional demand. Unaudited headline results included:
- Revenue of A$152.8m (+38% on FY25A)
- Normalised EBITDA of A$18.0m (+71% on FY25A)
- Normalised NPAT of A$6.6m
- Normalised EPS of 2.3 cps
- Approximately 100% cash conversion in FY26
This momentum, combined with the record result, helped attract a broad base of new institutional investors alongside continued support from existing shareholders.
SEG’s FY26 earnings upgrade in late June 2026 lifted EBITDA guidance to $18 million, with the FIFA World Cup and sustained Media segment growth named as the two drivers of Q4 outperformance, and the CBA senior debt facility simultaneously refinanced and extended to July 2028.
Craig Hutchison, Managing Director
“The strength of demand for the Placement is a significant endorsement of SEG’s strategy and the acquisition of MediaWorks. We thank our existing shareholders for their continued support and are very pleased to welcome a number of high-quality new institutional investors to the SEG register.”
What SEG is buying — MediaWorks and the trans-Tasman thesis
MediaWorks is described as New Zealand’s #1 audio business and its third largest advertising platform across all media. The acquisition gives SEG a scaled distribution footprint across the Tasman, complementing its Australian sports content assets.
The NZ$130m MediaWorks acquisition was announced on 11 August 2026, with the deal structured to compress from a 5.1x entry multiple to 4.2x once approximately A$5 million in annual synergies are realised, and the rova digital platform flagged as a key growth vehicle with a roadmap to 800,000 monthly active users by FY30.
Standout MediaWorks metrics highlighted in the presentation include:
- Approximately 2.4 million weekly listeners, with 4 of New Zealand’s top 5 stations
- 54% revenue market share in radio, and roughly 59% audience share of the 25–54 demographic
- 6,000+ advertiser customers, a 22-year average tenure of the top 10, and largest customer at less than 2% of revenue
- Approximately 50% of New Zealand’s FM spectrum licences and 268 owned FM transmitters, representing significant barriers to entry
- rova, a proprietary digital audio platform with approximately 540,000 monthly active users
Management outlined that combining SEG’s premium sports content with MediaWorks’ audio distribution could extend cross-Tasman reach into 5 million-plus weekly listeners (↑92%), while diversifying revenue geographically and smoothing seasonality. rova currently holds no sports content or inventory, which the company frames as an opportunity to introduce SEG programming.
The financial case — scale, accretion and a clear deleveraging path
MediaWorks is being acquired for NZ$130.0m (~A$107.4m), representing 5.1x CY26 budgeted EBITDA, or 4.2x when adjusted for approximately A$5m of identifiable and executable synergies. Completion is targeted by 1 October 2026.
The transaction is to be funded through a combination of:
- An A$87.6m CBA debt facility
- Approximately A$11.7m from the placement (excluding the SPP)
- Approximately A$11.0m in existing cash
Following completion, SEG expects EPS accretion of approximately 68% on a pro forma FY26 basis, per the ASX announcement. The presentation’s pro forma profit and loss, which excludes any cost or revenue synergies, illustrates a separate EPS accretion figure of approximately 59%.
On leverage, the company expects pro forma net debt / EBITDA of approximately 1.9x at completion (including approximately A$5.0m of identified annual synergies), with a stated pathway to approximately 1.2x within two years.
| Metric | SEG FY26 | Pro Forma | Change (%) |
|---|---|---|---|
| Revenue | $152.8m | $284.0m | +85.8% |
| EBITDA | $18.0m | $36.1m | +100.7% |
| EBITDA margin | 11.8% | 12.7% | ↑1ppt |
| NPAT (normalised) | $6.6m | $12.0m | +81.1% |
| EPS (cps) | 2.3 | 3.7 | ~59% |
The ~59% EPS figure excludes any cost or revenue synergies and is presented by the company as illustrative and unaudited.
Retail shareholders invited via Share Purchase Plan
Separate from the placement, SEG is offering a non-underwritten Share Purchase Plan (SPP) to raise up to approximately A$2 million (before costs). Key terms include:
- Open to eligible shareholders with a registered address in Australia or New Zealand as at 7:00pm AEST on 11 August 2026
- Up to A$30,000 per shareholder at A$0.28 per share, the same price as the placement, with no brokerage
- The Board retains discretion to scale back applications or accept oversubscriptions, subject to the ASX Listing Rules and the Corporations Act 2001 (Cth)
Key SPP dates are as follows:
- SPP expected to open 21 August 2026
- SPP expected to close 11 September 2026
- New Shares expected to be issued on or before 18 September 2026
- SPP Offer Booklet expected to be available on or about 21 August 2026
What comes next
The roadmap to completion sets out several near-term milestones:
- Placement settlement on 19 August 2026, with allotment and trading on 20 August 2026
- SPP window from 21 August to 11 September 2026
- A general meeting to approve the oversubscription shares (date to be confirmed)
- Acquisition completion targeted for 1 October 2026
Looking ahead, SEG has pointed to continued momentum into FY27, referencing forward-booked events including the Legends Game, the AFL Wildcard Round, the AFL and NRL finals, and the first-ever NFL game in Melbourne. Management framed the combined trans-Tasman platform as offering multiple growth levers across audience, monetisation and content as the company moves into the next phase of its growth.
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