- ARN Media (A1N) acquires a 14.8 per cent interest in Southern Cross Media Group (SXL) for $38.3 million
- The company reported the stake as a strategic equity investment in a sector that it knows well and sees the equity position as offering “attractive” value to its shareholders
- Broadcasting Services Act 1992 (BSA) prohibits ARN media from owning a 15 per cent stake or higher in SCA
- SXL shares closed 20.4 per cent higher to 91.5 cents, while A1N shares closed 0.96 per cent lower to $1.03
ARN Media (A1N) has acquired a 14.8 per cent interest in Southern Cross Media Group (SXL) for $38.3 million.
The company reported it acquired the stake as a strategic equity investment in a sector that it knows well and sees the equity position as offering “attractive” value to its shareholders.
SCA is a leading media company and the home of Triple M, the Hit and LiSTNR networks around the nation, reaching more than 95 per cent of Aussies. The company is also affiliated with global audio platforms SoundCloud and Sonos Radio.
Due to licensing regulations, the SCA and ARN are unable to control more than two commercial radio broadcast licenses in all metropolitan and regional media markets.
The Broadcasting Services Act 1992 (BSA) has prohibited ARN media from owning a 15 per cent stake or higher in SCA.
ARN focus solely on audio broadcasting and owns national radio station KIISS and on-demand station, iHeartRadio.
SXL shares closed 20.4 per cent higher to 91.5 cents. A1N shares closed 0.96 per cent lower to $1.03.