Dex One, SuperMedia get court approval to merge

deal

US bankruptcy judge Kevin Gross unveiled a decision to approve the planned merger of US marketing services firm Dex One Corp (NYSE:DEXO) and advertising agency SuperMedia Inc (NASDAQ:SPMD), removing the last hurdle to the deal.

The companies can now exit bankruptcy after in March they had voluntarily filed for a pre-packaged Chapter 11 protection as part of efforts to facilitate the progress of their merger.

Under the terms of the tie-up deal, signed in August last year, Dex One’s shareholders will receive 0.20 shares in the enlarged group for each of their units and SuperMedia’s stockholders will get 0.4386 shares for every single unit they own. As a result, the existing shareholders of Dex One will control some 60% of the combined company, while those of SuperMedia will hold a 40% stake. The transaction, which was revised in December 2012 to include extended terms of the credit agreements, has received approval by the lenders and shareholders of both parties.

The combination is seen to create a stronger player with a better penetration of the local marketplace, the companies said previously. According to the affidavit of Dex One’s general counsel Mark Hianik, cited by Bloomberg, the merger would result in annual cost savings of as much as $175m (€133.9m).

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