- Southern Cross Media (ASX:SXL) receives a non-binding indicative proposal to be acquired by ARN Media (ASX:A1N) and Anchorage Capital Partners (ACP)
- The proposal is to acquire 100 per cent of SCA’s fully diluted share capital for consideration of 0.753 ARN ordinary shares and 29.6 cents in cash per share
- The offer is unsolicited, complex, and conditional, and shareholders are advised to take no immediate action
- The SCA Board will assess the proposal, which is subject to various approvals and conditions
- SXL shares are up 17.1 per cent, trading at 85.5 cents at 11:28 am AEDT, while A1N shares are down almost five per cent, trading at 81.3 cents at the same time
The proposal is to acquire 100 per cent of SCA’s fully diluted share capital for 0.753 ARN ordinary shares and 29.6 cents in cash per share.
It’s important to note that this proposal is unsolicited, complex, and highly conditional.
Given the nature of the offer, SCA recommends that shareholders refrain from taking any immediate action in response to the indicative proposal from ARN and ACP.
The indicative proposal is subject to several significant conditions, including unanimous recommendation from the SCA Board thorough due diligence a receiving necessary approvals from shareholders.
The deal also requires regulatory approvals from both the Australian Competition and Consumer Commission (ACCC) and the Australian Communications and Media Authority (ACMA).
To assist in evaluating the proposal, SCA has appointed Grant Samuel as its financial adviser and Corrs Chambers Westgarth as its legal adviser.