Wednesday, 15 August 2018

Announcement

TRANSACT: NZM: Appeal of High Court decision declining merger

05 Feb 2018 09:58NZX
MARKET ANNOUNCEMENT

5 February 2018

APPEAL OF HIGH COURT DECISION DECLINING MERGER

AUCKLAND, 5 February 2018: NZME Limited (NZX:NZM, ASX:NZM) ("NZME"), Fairfax
Media Limited (ASX:FXJ) and Stuff Limited (previously Fairfax New Zealand
Limited) ("Stuff") have today confirmed that they will apply for leave to
appeal the High Court decision upholding the New Zealand Commerce
Commission''s ("NZCC") decision not to clear or authorise the proposed merger
of the two businesses.

On 3 May 2017, the NZCC announced that it had declined to clear or authorise
the merger of NZME and Stuff. The appeal by NZME and Stuff, heard in the High
Court in October 2017, was unsuccessful, although the findings of the High
Court revealed that the NZCC had significantly understated the quantifiable
public benefits from the proposed merger.

After careful review and analysis of the High Court''s reasons, the companies
continue to believe that the NZCC was wrong in fact and wrong in law to
decline clearance or authorisation of the merger.  The High Court''s findings
increase the range of estimated quantifiable net benefits to the public
arising from the transaction to $133 million to $209 million, up from the
NZCC''s estimated range of $41 million to $204 million; however the High Court
still found that these benefits were outweighed by the expected loss of
plurality in the media. The appeal will focus on the issue of plurality.

Given the potentially significant benefits from the merger, NZME is of the
view that appealing the High Court decision is in the best interests of NZME,
its shareholders and consumers.

- ENDS -

For further information:

Paddy Walker
Investor Relations Manager
NZME
T: +64 21 486 003
Email: Paddy.Walker@nzme.co.nz

About NZME
NZME is a leading New Zealand media and entertainment business that reaches
more than 3.3 million kiwis*. Whether reading, listening or watching, our
audience gets the content they want - where and when they want it. NZME
offers advertisers a unique opportunity to access its growing audience via a
fully integrated multi-platform presence. NZME is listed on the NZX Main
Board (code NZM) with a foreign exempt listing on the ASX (code NZM).
www.nzme.co.nz

*Source: Nielsen CMI, fused database: September 2017 (based on population 10
years +). Based on unduplicated weekly reach of NZME newspapers, radio
stations, and monthly domestic unique audience of NZME''s digital channels.
End CA:00313761 For:NZM    Type:TRANSACT   Time:2018-02-05 09:58:51
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