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Murdoch to buy Heritage
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March 17, 1997: 11:30 a.m. ET
News Corp. to pay $754 million in stock, assume $600 million in debt
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NEW YORK (CNNfn) - News Corp. Ltd. said on Monday it reached an agreement to buy marketing services company Heritage Media Corp. in a stock swap valued at $754 million.
News Corp. said it would pay the equivalent of $20.50 for each of Heritage's 38.6 million shares, on a fully diluted basis, by issuing its preferred limited voting ordinary ADRs. It said it would also assume Heritage's outstanding debt of about $600 million.
News Corp., lead by Rupert Murdoch, said Heritage Media would be acquired by a financial unit and the merger would be non-taxable. The transaction is subject to approvals of the Heritage shareholders and regulatory agencies.
News Corp., through its News America FSI division, is a publisher of promotional free-standing inserts (FSI's) in the United States.
Heritage's marketing services company in the United States owns ACTMEDIA Inc. and DIMAC Marketing Corp. ACTMEDIA is a provider of in-store marketing products for supermarkets and drugstores.
"This merger continues the strengthening of our various marketing opportunities to the benefit of advertisers who use all types of vehicles to get their message across to consumers whether it be through television, print or other marketing operations," Murdoch said in a statement.
Dallas-based Heritage also operates six network-affiliated television stations and 24 radio stations in seven major markets.
News Corp. said it planned to sell Heritage's radio and television broadcast properties and keep its marketing services operations, which would complement those of its own.
--Will Morton
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News Corp. Ltd.
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