Nine sells off SCA shares

The price of Southern Cross Media shares has soared in recent months

Nine Entertainment Co advised the ASX this morning that it had sold its entire 9.99% shareholding in Southern Cross Media (Southern Cross Austereo) at a price of $1.54 a share.

The price of Southern Cross Media shares has soared in recent months, bouncing from around $1.00 back in April 2016 to highs of over $1.60 this week. There has also been some speculation that after looking at the potential of a merger of the two companies if media law reform goes through, the idea has been put on hold.

In April, Nine and Southern Cross entered into a five-year regional television agreement which both parties report has brought significant commercial benefits.

Nine CEO Hugh Marks said: “Our relationship with Southern Cross has never been better. The early performance of our new affiliate agreement has surpassed our expectations, and we look forward to a long and prosperous relationship between our two companies.”

Nine said the proceeds of the sale will provide the broadcaster with increased flexibility in executing its strategy in the future.

SCA told Mediaweek this week that its regional TV audience has increased 58%, giving advertisers bigger regional TV audiences than ever before.

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