Overview of non-binding indicative proposal response

ARN Media Limited (ASX: $A1N) and Anchorage Capital Partners Pty Limited have responded to Southern Cross Media Group Limited (ASX: $SXL)'s announcement regarding the non-binding indicative proposal to acquire 100% of SCA's share capital. The proposal includes an offer of 0.753 ARN shares and 29.6 cents cash per SCA share, representing a premium to the undisturbed SCA share price of A$0.730 on 17 October 2023.

Consortium's response to SCA's announcement

The Consortium disagrees with SCA's assessment that the proposed transaction is not in the best interests of SCA shareholders. They view it as a unique opportunity for both SCA and ARN shareholders to unlock immediate and long-term value creation in broadcast radio and digital audio. The Consortium remains open to engaging with SCA in a constructive manner and is willing to adjust the ARN Exchange Ratio to up to 0.870 ARN shares per fully diluted SCA share, subject to the satisfactory completion of outstanding due diligence.

Summary of response and outlook

The response from ARN Media Limited and Anchorage Capital Partners Pty Limited to SCA's announcement outlines their continued commitment to the proposed transaction and their willingness to adjust the ARN Exchange Ratio based on due diligence. The Consortium aims to engage constructively with SCA to finalize the necessary work and relevant transaction documentation promptly. It is important to note that the Revised Indicative Proposal is subject to various conditions, including due diligence and regulatory approvals, and there is no certainty that a transaction will eventuate. ARN Media Limited will keep the market informed of any material developments.