ARN Media and Anchorage enhance takeover bid for Southern Cross
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The news: ARN Media and Anchorage Capital Partners have said they are open to enhancing a bid to buy Southern Cross Media Group, adding that ARN intends to vote to remove chair Robert Murray if the resolution is put to a general meeting of the company.
The numbers: Last October, ARN and Anchorage offered to acquire 100% of the fully diluted share capital of Southern Cross for 0.753 shares (ARN exchange ratio) in a reconstituted company following re-allocation of SCA and ARN assets (ARN Newco) and 29.6 cents cash per share.
Today, the consortium said it was willing to adjust the ARN exchange ratio to up to 0.870 ARN shares per fully diluted SCA share. They said based on the last closing price of ARN shares prior to the indicative proposal being made, the revised proposal would imply up to an additional 10 cents of value.
The consortium noted the revised proposal was preliminary, incomplete and non-binding.
The context: On Wednesday, major shareholder of Southern Cross, Spheria Asset Management, called for the immediate resignation of Murray after the company dragged its feet in assessing the takeover offer from ARN Media and Anchorage and ultimately knocked it back.
Today, the consortium said it disagreed with the Southern Cross assessment that the bid was not in the best interest of shareholders and it remained “open to engaging with Southern Cross in a constructive manner".
Pointing to the letter Southern Cross received from Spheria, ARN said it would vote approximately 8% of the 14.8% of issued share capital in Southern Cross it held in favour of the proposal resolutions if they were put to a general meeting.
The source: ASX announcement
