ARN Media and Anchorage make offer for Southern Cross Media

The news: Shares of Southern Cross Media Group (SCA) rocketed on Wednesday after ARN Media and Anchorage Capital made a takeover offer for the radio station owner, in a deal that could further consolidate Australia's media landscape.

The numbers: Under the proposal, ARN and Anchorage would acquire 100% of Southern Cross's fully diluted share capital for 0.753 ordinary ARN shares and 29.6 cents per SCA share. ARN has a market cap of $261.2 million, while its target's market value is $176.3 million. Southern Cross shares were trading more than 16% higher at $0.85 at around 10.45am AEDT.

The context: The SCA board said it would consider the deal but noted it was non-binding, highly conditional and still subject to regulatory approvals should it progress any further. In June, ARN bought up 14.8% of SCA in an after-market raid. It would need regulatory approval to increase its ownership above 15% under Australian Communications and Media Authority rules.