A proposal from Australian Community Media (ACM) for Southern Cross Media Group Limited (SCA) to acquire certain assets of ACM has been rejected after an investigation found that it would not align with SCA’s strategy and would not be in the best interests of SCA shareholders.
Southern Cross Media Group Limited announced on 28 May 2024 that it had decided to investigate ACM’s proposal for SCA, declaring at the time that discussions were preliminary and that “there is no certainty that a transaction will eventuate”. Following the review and consultation with major shareholders, SCA has decided not to pursue ACM’s proposal.
“ACM’s proposal would have involved SCA acquiring a portfolio of ACM’s key print and digital news publications and its agriculture division. ACM’s digital and regional capabilities and content hold some attraction for SCA. However, SCA has concluded that the relevant assets do not align with SCA’s audio-focused strategy and would not create value for SCA shareholders. The SCA Board, therefore, considers it would not be in the best interests of SCA shareholders to pursue ACM’s proposal,” SCA said in an ASX update.
“SCA has appreciated the constructive and open engagement from ACM’s leadership and management team over the past four weeks and wishes ACM well for its ongoing digital transformation.
SCA recommends shareholders take no action in relation to ACM’s proposal. SCA will continue to update shareholders as required by its continuous disclosure obligations. SCA’s guidance provided on 15 May 2024 for the full financial year to 30 June 2024 remains unchanged”.
