ARN has today announced its bid to acquire 100 per cent of rival radio competitor Southern Cross Austereo.
In a statement released today, ARN and private equity firm Anchorage Capital Partners confirmed they have “made a non-binding indicative offer to acquire 100 per cent of the fully diluted share capital of Southern Cross Media”.
ARN is home to stations including the KIIS network which hosts the Kyle and Jackie O show.
It said “the Proposed Transaction and Separation will result in two separate, national media organisations that will compete independently of each other on metro and regional radio, and more broadly”.
Under the Indicative Proposal, SCA shareholders would receive 0.753 ARN shares and 29.6 cents cash per SCA share. Based on the last closing price of ARN shares (A$0.855 on 17 October 2023).
ARN said the deal would create a “focused metro radio network of 10 stations across Sydney, Melbourne, Brisbane, Adelaide, and Perth, anchored by the KIIS and Triple M brands in each of these locations and with differentiated, nationally and locally relevant talent”.
For ARN shareholders it will create a “larger, growing and profitable regional radio footprint comprised of 88 stations up from 47 today, plus full ownership of ARN’s two existing stations in Canberra, delivering a more compelling regional network for advertisers and communities”.
ARN Media Chairman, Hamish McLennan said: “The Board has carefully considered numerous strategic options to continue the company’s growth and believe this transaction would be transformative for both sets of shareholders. ARN’s regional radio footprint would be almost doubled while we would maintain a focused metro radio network, underpinned by the recognised KIIS and Triple M brands in metro areas. The increased scale supports the potential for future index inclusion and liquidity once the transaction is complete.”
ARN CEO and managing director Ciaran Davis said: “There is a significant value creation opportunity bringing together certain ARN and SCA radio and digital audio assets. ARN is ideally positioned to support and operate an expanded regional radio network and as a combined group of scale in digital audio, positioned to compete efficiently and effectively with international competitors.”
