- Southern Cross Media Group (ASX:SXL) acknowledges ARN Media’s (ASX:A1N) announcement on March 15, 2024, indicating their intent, alongside Anchorage Capital Partners (ACP), to revise their proposal to acquire SCA
- This revision involves increasing the share exchange ratio, offering up to 0.87 shares in a reconstituted company (ARN Newco) along with 29.6 cents cash per share
- The SCA Board is managing a plan for board renewal, including the retirement of Glen Boreham and Rob Murray as directors during 2024
- SXL last traded at 96 cents, at 12:30pm AEDT
Southern Cross Media Group (ASX:SXL) has acknowledged ARN Media’s (ASX:A1N) announcement on March 15, 2024, regarding its intention, alongside Anchorage Capital Partners (ACP), to revise the proposal to acquire SCA.
But perhaps the more interesting nugget in today’s news surrounding Southern Cross is that Citicorp is trying to boot out company Chair Rob Murray.
The broking giant will move a motion at an EGM simply reading “That Mr Robert Murray be removed as a director of SCA, with immediate effect.”
A second motion seeks to boot out anyone installed as a director “between 12 March 2024 and the date of the general meeting.”
Then there’s the revision of the takeover.
This revision involves increasing the share exchange ratio, offering up to 0.87 shares in a reconstituted company (ARN Newco) along with 29.6 cents cash per share to shareholders.
This appears to have done the trick. The SCA Board unanimously deemed it appropriate to re-engage with the Consortium.
“The Consortium’s revised proposal will provide a significant increase in the consideration for SCA shareholders, and the SCA Board is willing to re-engage on the basis of the higher value now being put forward.” SCA Chair Rob Murray said.
Despite the progress, the Revised Indicative Proposal remains subject to several conditions, and the certainty of a binding transaction is not guaranteed.
Additionally, the SCA Board has overseen a plan for board renewal, including the intended retirement of Glen Boreham and Rob Murray as directors in 2024.
“Having joined SCA on the same day as Glen, I can attest to the significant contribution he has made over nearly 10 years,” SCA Chair Rob Murray said.
“Our Board and executive team have benefited greatly from Glen’s knowledge and insights, his experience in mergers and acquisitions and other corporate transactions, and his global networks in the technology and data industries,”
“In the meantime, the Board is satisfied that its reduced size and its mix of skills and experience are appropriate for SCA’s current needs. We will review this as SCA’s business and operations, including the current corporate activity, continue to evolve.”
SXL last traded at 96 cents, at 12:30pm AEDT.
A1N last traded at 80.5 cents, at 12:30pm AEDT.