Southern Cross Media Group (SCA) has advised the ASX that it has “decided not to pursue” acquiring Australian Community Media’s (ACM) key print and digital news publications and its agriculture division.
ACM’s portfolio includes 14 daily print and digital news publications and its agriculture division, which was previously an attractive asset for Southern Cross.
However, in the announcement to ASX, Southern Cross has since noted its “audio-focused strategy and would not create value for SCA shareholders.”
“The SCA Board, therefore, considers it would not be in the best interests of SCA shareholders to pursue ACM’s proposal,” according to the ASX announcement.”
Southern Cross noted that the guidance provided in May for the full financial year to 30 June 2024 remains unchanged.
Last month, Southern Cross advised the ASX that it had been approached by Australian Community Media (ACM) with a proposal for SCA to acquire assets from ACM.
The proposal was described as “materially different” to ACM’s previous proposal, which Southern Cross rejected in November 2023.
At the time ACM approached SCA with the offer, its board said it had 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 Southern Cross was keen to clarify that “there is no certainty that a transaction will eventuate”.
That followed the withdrawal of Anchorage Capital Partners (ACP) from the proposed $250 million deal that would have seen ARN and Anchorage acquire Southern Cross, an Alternative Indicative Proposal was put forward by ARN.
See also: SCA approached by Australian Community Media in new acquisition proposal