Southern Cross says it has not received EGM notice to oust board
Make us a preferred source
Make us a preferred source on Google
The news: Major shareholders of Southern Cross Austereo are reportedly pushing to oust the board and management over delays in evaluating a takeover offer from rival ARN Media, but the company claims it has not received any notice.
The numbers: Shareholders Spheria Asset Management, Allan Gray and Ubique Asset Management, who together account for more than 25% of the share capital, are looking to call an extraordinary general meeting to remove the company’s board, according to reports by the Australian Financial Review.
Southern Cross shares were down 2.2% to 90 cents in early trading on the ASX.
The context: In an announcement to the ASX on Friday, Southern Cross said it had not yet received any notice for an extraordinary general meeting by the shareholders, and defended its lengthy discussions with ARN and Anchorage on the proposal.
The company noted it had not received financial and commercial due diligence information from the bidders required to complete its assessment.
ARN and Anchorage made a takeover offer in October 2023 in a bid to consolidate the broadcasting media segment. Southern Cross Chair Rob Murray previously described the bid as ‘opportunistic’.
The company on Thursday reported a 71% slump in half-year profit, prompting its shares to end 3.7% lower for the day. It also outlined plans for cost cuts worth $30 million.
Spheria’s Matthew Booker told the AFR the fund manager believes “protracted negotiations risk the ARN deal not eventuating, leaving the business with a stretched balance sheet in a challenging macroeconomic environment”.
The sources: AFR, ASX announcement
