KIIS radio owner, ARN Media, has spent a whopping $38.3 million dollars buying a 14.8 per cent share of listed rival Southern Cross Media Group.
ARN did not own any share in SCA before making the move. As reported by The Australian Financial Review (subscription needed), ARN would have needed regulatory approval to go above the 15 per cent mark.
ARN paid significantly above the last traded price of 76¢ per share – offering to pay a 42.1 per cent premium of $1.08 per share.
The after hours move was announced by the AFR late Monday evening.
The move comes just one month after CEO Grant Blackley announced he would be stepping down from his role after 8 years.
Not long after, chief sales officer Brian Gallagher announced he would also be leaving SCA.
SCA’s latest financial results showed the company had a net profit of $16.8m for the second half of last year. This was down 48.3 per cent from the year before due to economic conditions. Revenue was stable.
