By Scott Murdoch

SYDNEY (Reuters) -Australia’s Seven West Media said it would merge with Southern Cross Media to create a A$417 million ($273.97 million) metropolitan and regional media group to better compete with global streaming platforms.

Seven West shares, controlled by mining and media billionaire Kerry Stokes, were up 7% on Tuesday to A$0.15, while Southern Cross stock was 6.6% higher. Stokes’ Seven Group holds about 40% of Seven West.

Under the deal, Seven West shareholders would receive 0.1552 Southern Cross Media shares for each share held.

The offer values Seven West shares at A$0.13 each, slightly below the stock’s A$0.14 closing price on Monday. The combined group will be worth A$417 million based on the current market capitalisations of both entities.

Southern Cross owns

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