Southern Cross Media Group has advised the ASX that it has recently been approached by Australian Community Media (ACM) with a proposal for SCA to acquire assets from ACM.
The proposal has been described as “materially different” to ACM’s previous proposal, which Southern Cross rejected in November 2023.
ACM has a portfolio of 14 daily print and digital news publications, key regional/metro titles, and an agriculture division.
The group also have partnerships with organisations such as Play HQ to bring local scores and statistics to regional Australians.
The SCA board said it has decided to investigate ACM’s revised proposal to “determine whether it would align with SCA’s strategy and have the potential to create value for and be in the best interests of SCA shareholders, particularly in relation to prospective value in ACM’s digital capabilities and content, regional focus, and other potential synergies.”
All discussions between the two companies are currently in their early stages, and SCA was keen to clarify that “there is no certainty that a transaction will eventuate”.
The news comes following last week’s confirmation that ARN is “still considering options in relation to alternative proposals to acquire SCA”.
After the withdrawal of Anchorage Capital Partners (ACP) from the proposed $250 million deal that would have seen ARN and Anchorage acquire SCA, an Alternative Indicative Proposal was put forward by ARN.
SCA said that while it “remains open to considering proposals that would deliver fair value and be in the best interests of all SCA shareholders,” ARN’s alternate proposal “does not satisfy either of these requirements.”
Due to that decision, SCA added it had “determined not to engage on any future proposal which may be provided by ARN in terms consistent with the Alternative Indicative Proposal.”
Anchorage originally withdrew its involvement in the potential deal due to “continued decline in the trading performance of regional TV.”
Australian Community Media has been approached for comment.
See also: Why ARN Media still wants SCA’s Triple M: Ciaran Davis expands on revised takeover plan