ARN Media Limited (ASX: $A1N) has provided an update on its non-binding indicative offer to acquire Southern Cross Media Group Limited (ASX: $SXL). The offer, made in partnership with Anchorage Capital Partners Pty Limited, aimed to acquire 100% of the fully diluted share capital of SCA. The proposal involved ARN acquiring certain radio stations currently owned by SCA, while ACP would acquire the remaining SCA radio stations in addition to certain ARN radio stations.
ARN Media Chairman, Hamish McLennan, expressed confidence in the pursuit of the acquisition, emphasizing the potential for immediate and long-term value creation. He highlighted the expected benefits for both ARN and SCA shareholders, including the creation of a focused metro radio network, an expanded and growing regional radio network, and a scaled, fast-growing digital audio platform. McLennan also underscored the commitment to delivering an attractive and certain outcome to SCA shareholders at the earliest possible date.
ARN Media Limited (ASX: $A1N) continues to pursue the acquisition of certain SCA radio assets and the combination of ARN and SCA digital audio assets. Despite the withdrawal of ACP from the Consortium, ARN remains committed to engaging with SCA on a revised non-binding indicative proposal. The proposed transaction aims to deliver total value per fully diluted SCA share of approximately A$1.20, exceeding the implied value of the previous Consortium Proposal. ARN is supportive of exploring alternative proposals that provide greater value or cash certainty for SCA shareholders. The company looks forward to constructive engagement with SCA on the proposed transaction, with a focus on optimizing the strategic and value outcome for both sets of shareholders.