Broadcaster ARN and personal fairness investor Anchorage Capital (ACP) have made a takeover bid for radio and tv firm Southern Cross Media.
The dad or mum firm of Southern Cross Austereo, it operates 99 radio stations, LiSTNR and 96 TV indicators, and gives nationwide gross sales illustration for 56 different radio stations and 39 TV stations.
As a part of the Proposed Transaction, it’s supposed for the radio and tv property of ARN and SCA to be separated into impartial possession by every of ARN and ACP topic to all obligatory regulatory approvals. The Proposed Transaction and Separation will lead to two separate, media organisations that may compete independently of one another on metro and regional radio, and extra broadly.
ARN Media Chairman, Hamish McLennan (pictured) mentioned: “The Board has rigorously thought of quite a few choices to proceed the corporate’s progress and consider this transaction could be transformative for each units of shareholders. ARN’s regional radio footprint could be virtually doubled whereas we’d preserve a centered metro radio community, underpinned by the recognised KIIS and Triple M manufacturers in metro areas. The elevated scale helps the potential for future index inclusion and liquidity as soon as the transaction is full.”
ARN CEO and Managing Director Ciaran Davis mentioned: “There is a major worth creation alternative bringing collectively sure ARN and SCA radio and digital audio property. ARN is ideally positioned to help and function an expanded regional radio community and as a mixed group of scale in digital audio, positioned to compete effectively and successfully with worldwide rivals.”
SCA mentioned in a press release, “The proposal is unsolicited, advanced, and extremely conditional. SCA recommends shareholders take no motion in relation to the Indicative Proposal from ARN and ACP. The Indicative Proposal is topic to the unanimous suggestion of the SCA Board, due diligence, shareholder and regulatory approvals from each the ACCC and ACMA, and different phrases and circumstances. The Board of SCA will think about the Indicative Proposal and has appointed Grant Samuel as its monetary adviser and Corrs Chambers Westgarth as its authorized adviser to assist assess the Indicative Proposal. SCA will replace shareholders as required.”
Mediaweek speculates the takeover may additionally imply SCA’s bold $200m play to re-sign Kyle and Jackie O could be deserted. If that was the case, it may imply that ARN doesn’t should match the large supply SCA made to safe the 2 KIIS 106.5 breakfast stars for a brand new contract interval.
Anchorage Capital at the moment has solely a handful of investments. The firm lists a portfolio of 5 companies, two of them primarily based in New Zealand. Its main funding is in retailer David Jones. Anchorage invested within the firm in March this 12 months when it turned the operator of its community of 43 shops round Australia and New Zealand.
It’s too early to know what kind of influence the arrival of Anchorage would have on employees numbers. It may put a freeze on contract negotiations and it could be anticipated employees numbers could be underneath the microscope.
