The Seven Network, Australian media and investment firm, has announced its merger with WesTrac Holdings, a heavy equipment firm. The merger will be an all equity merger and as a result of this a new company would be created called Seven Group Holdings. The new company will be listed on the Australia Securities Exchange.

By this merger, Seven Network is trying to take the advantage of recent mining boom as the resource industry in Australia is supposed to be more profitable than the television and newspaper industry, according to the management of the Seven Network. Also the company said in a statement that Seven Network is eying to become a diversified operating group rather than only an investment firm focused on media.

"WesTrac will produce more cash than the media group," said Kerry Stokes, Seven Network chairman.

WesTrac is a caterpillar dealer and a wholly owned subsidiary of Australian Capital Equity, another Kerry Stokes' firm. As per the terms of the merger, it will be an all stock transaction and Seven Networks will issue new shares worth A$ 1 billion to Australian capital Equity for WesTrac. Also Seven Network will assume the debt of Australian Capital Equity which is around A$ 1 billion.

The new company, Seven Group Holdings, will hold the 100% stake of WesTrac Group and 47% of Seven Media Group according to the deal. The shareholders of Seven Network will receive one share of Seven Group Holding for each share held.