Overview of Southern Cross Media Group (ASX: $SXL) situation

Southern Cross Media Group (ASX: $SXL), also known as Southern Cross Austereo (SCA), is currently facing a challenge as three major shareholders are seeking to requisition an extraordinary general meeting to remove the company's Chair, Board, and management. The company has been engaged in evaluating a non-binding indicative proposal received from a Consortium comprising ARN Media Limited and Anchorage Capital Partners (ACP). However, the Board highlights the need for critical financial and commercial due diligence information from the Consortium to properly assess the proposal.

Executive commentary on the situation

The SCA Board and management have been dedicated to evaluating the non-binding indicative proposal received from the Consortium comprising ARN Media Limited and Anchorage Capital Partners (ACP). However, the Consortium's own valuation of the Indicative Proposal in its initial announcement has raised concerns regarding the value to SCA shareholders. The SCA Board has requested but has not yet received the financial and commercial due diligence information it requires to complete the assessment. The Board respects the rights of shareholders to call an extraordinary general meeting and will fully comply with its legal obligations. However, it considers it would not be in the interests of SCA shareholders for such a meeting to be called before finalisation of the SCA Board's consideration of the Indicative Proposal.

Summary of Southern Cross Media Group (ASX: $SXL) situation

Southern Cross Media Group (ASX: $SXL), also known as Southern Cross Austereo (SCA), is currently facing a challenge as three major shareholders seek to requisition an extraordinary general meeting to remove the company's leadership. The company has been engaged in evaluating a non-binding indicative proposal received from a Consortium comprising ARN Media Limited and Anchorage Capital Partners (ACP). However, the SCA Board highlights the need for critical financial and commercial due diligence information from the Consortium to properly assess the proposal. The Board reiterates its commitment to act in the interests of all shareholders and will keep the market informed in line with its continuous disclosure obligations.