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Following an initial decision to consider buying up assets from newspaper group Australian Community Media last month, radio and television broadcaster Southern Cross Media Group Ltd (ASX:SXL) has decided not to go ahead with the proposal.
On May 28, Soutern Cross said it would investigate whether taking on specific assets from Australian Community Media – comprising both print and digital news publications, as well as its agriculture division – would be in the company’s strategy.
However, today its board informed the market that the proposal would not be going ahead, saying in a statement that although ‘ACM’s digital and regional capabilities and content hold some attraction for SCA’, it had decided that ‘the relevant assets do not align with SCA’s audio-focused strategy and would not create value for SCA shareholders.’
However, the Southern Cross board wished Australian Community Media well in its digital transformation.
Southern Cross’ investments remain wholly focused on audio and television production and distribution, as it operates LiSTNR, the Hit and Triple M networks and regional television stations across Australia.
In radio, it owns more than 99 stations across FM, AM, and DAB+ under the Triple M and Hit network brands and provides national sales representation for 56 regional radio stations, while in television, it broadcasts over 96 free to air TV signals across regional Australia and represents or has a joint venture with 39 TV stations.
This includes broadcasting Network 10 programs in regional Queensland, southern NSW, and Victoria.
Australian Community Media – formerly known as Rural Press – runs more than 160 regional publications, including dailies the Bendigo Advertiser, the Illawarra Mercury, the Newcastle Herald and the Canberra Times.
Souther Cross has been trading at 61 cents.
