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Southern Cross Media Group Limited (ASX:SXL) has entered a binding agreement to sell its remaining television assets to Seven West Media (ASX:SWM). The assets include those in Tasmania, Spencer Gulf, Broken Hill, Mt Isa, Darwin, and Remote, Central and Eastern Australia. The sale is expected to be completed by June 30, 2025.
This decision follows a previous proposal to divest these assets to Australian Digital Holdings, which was announced on February 27, 2025. However, the final conditions for that transaction were not met, and negotiations with ADH have ceased.
The sale to SWM will result in SXL’s complete divestment of all television assets, aligning with its “All About Audio” strategy. The proceeds from the sale will be $3.75 million in upfront consideration, matching the upfront consideration proposed in the previous ADH transaction. SCA plans to use these funds to reduce its net debt.
The total estimated consideration from the sale of SXL’s television assets is projected to be between $19 and $24 million. This represents an EBITDA multiple range of approximately 4 to 5 times on a proforma FY25 basis.
Full release can be read here.
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