Sports Entertainment Group (ASX:SEG) has signed a non-binding agreement with betting agency TAB New Zealand for the NZ$4 million acquisition of SENZ Digital and Audio. 

The deal was struck between TAB and Sports Entertainment Group subsidiary Sports Entertainment Network NZ (SEN NZ), with TAB to take control of the SENZ brand, app and website, and its network of 28 radio stations across 29 frequencies. 

Sports Entertainment Group, which has a $58.75 million market capitalisation, says the transaction is expected to be completed in February next year. 

This deal is paired with a content supply partnership with Sports Entertainment’s Australian business, SEN, which will see all SEN programming made available on SENZ frequencies. 

Sports Entertainment notes it has also agreed to extend its commercial relationship with the Australian brands of TAB NZ partner Entain for a 3-year term. 

SEG Chairman Craig Coleman says this transaction removes start-up losses from the company’s operating performance. 

“In FY23, our New Zealand business represented a negative $2.4 million drag on underlying EBITDA. SEG continues to focus on reducing net debt in FY24. This transaction aligns with this objective, in addition to several other proposals and initiatives under consideration.”

“This transaction aligns with this objective, in addition to several other proposals and initiatives under consideration”

TAB NZ Interim Chair Anna Stove says the strategic partnership with Entain has positioned the company to build on the progress made in the last 2-and-a-half years. 

“There is an opportunity to create a one-stop shop for news, views, and information for punters in New Zealand.”

Sports Entertainment Group is an Australian sports media content and entertainment business. 

Write to Aaliyah Rogan at Mining.com.au

Images: Sports Entertainment Group