The Seven Network and heavy equipment firm WesTrac Holdings are to merge, creating a diversified operating and investment group called Seven Group Holdings Ltd.
The new company will hold 47 per cent of Seven Media Group, comprising of the television network Pacific Magazines and Yahoo!7.
Seven says the deal will turn Seven Network from an investment holding company focused on the media to being part of a diversified operating group with strong growth prospects.
"Today is an exciting day in Seven's evolution," Seven's deputy chairman and independent director, Peter Ritchie, said.
"The proposed transaction represents a transformational opportunity for Seven and substantially repositions the company to be a leading Australian diversified operating and investment group," said
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"WesTrac Group is a significant equipment management business that ACE has grown over the last 20 years, with solid future growth prospects in Australia and particularly in China," Mr Richie said.
The deal will require shareholder approval.
Seven profit down
The announcement came after Seven reported net profit for the six months to December 26 of $509.13 million, up from $20.03 million in the previous corresponding period.
Excluding significant items, Seven made profit after tax of $40.561 million, down 47.4 per cent.
