Macquarie Media tables $1.35bn offer for Southern Cross Broadcasting Tim Addington
Macquarie Media Group has bid $1.35bn for Southern Cross Broadcasting, as part of a deal that will see Fairfax Media buy various SCB assets, including Melbourne’s 3AW and Sydney’s 2UE radio stations.
Under the terms of the deal, MMG will hold onto SCB’s regional television operations, which include Ten Network affiliate stations in Victoria, New South Wales, and Queensland, as well as stations in Tasmania and the Northern Territory.
Fairfax will take control of SCB’s metropolitan talk and music radio stations, as well as Southern Star, the TV production company behind Blue Heelers, Water Rats and Love My Way, as well as Endemol Southern Star, which produces Big Brother and Deal or No Deal. It will also acquire Satellite Music Australia, Southern Cross Syndication, the Southern Cross View digital media business and Tricom.
Fairfax is expected to pay around $480m in cash for the assets.
David Kirk, CEO at Fairfax Media said: “Our proposed acquisition is a strategic extension for Fairfax Media into metropolitan radio and video production. It will enhance our position across all distribution channels.
“The metro radio business offers synergies to Fairfax Media. It provides promotional benefits in Sydney and Melbourne, and assists, via the stations in Brisbane and Perth, the national reach and effectiveness of all of Fairfax Media’s news and classified internet platforms.”
The board of SCB has recommended shareholders vote in favour of the deal, and a vote is expected to take place in October.
John Dahlsen, SCB chairman, said: “Given the evolving media landscape, the board of SCB has spent considerable time reviewing various strategic options to maximise long-term value for our shareholders….by achieving, in one transaction for SCB shareholders, the effective sale of our regional television business to MMG and our radio network and television production and distribution business to Fairfax Media, we have found optimum buyers for our quality media assets.”.
The deal will be subject to approval from regulators including the ACCC, ACMA and FIRB. Approvals are expected to be obtained before the vote in October.
