Takeover bid: ARN allowed to keep 14.8% holding in SCA

ARN Media will be allowed to hold on to its shares in Southern Cross Media as it goes ahead with its takeover bid.

ARN currently has a 14.8% holding in SCA, and was originally ordered by the Takeovers Panel to sell down 6.83%.  The order came after SCA shareholder Keybridge Capital claimed that the original purchase of the shares was illegal and breached the Corporations Act.

After ARN appealed, the Panel reversed the decision, with the new orders instead permitting ARN to keep the shares subject to certain conditions.

The sitting Panel – which includes names such as Bruce Cowley, sitting President Richard Hunt, and John McGlue – will publish its reasons for the decision at a later date. 

ARN welcomed the decision by the Review Panel. 

A spokesperson for the company said “We are happy with this decision and now look forward to accelerating the engagement with the SCA Board. From what we have seen so far, we believe our proposal is a very compelling proposition for SCA shareholders and, together with Anchorage, we are committed to finalising a certain proposal in an expedient manner.” 

In October, ARN Media and Anchorage Capital made a non-binding indicative offer to acquire 100% of the fully diluted share capital of Southern Cross Media.

Under the original Indicative Proposal, SCA shareholders would receive 0.753 ARN shares and 29.6 cents cash per SCA share. 

As part of the Proposed Transaction, it is intended for the radio and television assets of ARN and SCA to be separated into independent ownership by each of ARN and ACP, subject to all necessary regulatory approvals.

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. 

See Also: Why ARN wants to acquire SCA and its plans for Hit and Triple M networks