ARN looks to accelerate SCA takeover proposal after major ruling overturned
ARN has announced it is looking forward “to accelerating the engagement with the SCA board” on its takeover proposal, following a major ruling being overturned today.
Late last year, the network lost an appeal to overturn a decision that it bought shares from radio rivals Southern Cross Austereo in “unacceptable circumstances”. In June, ARN bought 14.8 per cent shares in SCA via fund manager, Allan Gray. At the time of the purchase, Gray had 21.71 per cent voting power in SCA, as well as 20.04 per cent in ARN; meaning at the time ARN purchased the shares, its voting power in SCA increased to 31.24 per cent.
In November, the Takeovers Panel ruled that 6.83 per cent of that figure was in breach of the law which ARN soon appealed.
However, on Wednesday, the panel made new orders on the matter, which will see ARN allowed to retain its 14.8% holding in SCA, and not have to sell the 6.83% shares.
Read the full order here.
“We are happy with this decision and now look forward to accelerating the engagement with the SCA board,” a spokesperson for ARN told Mumbrella in a statement.
“From what we have seen so far, we believe our proposal is a very compelling proposition for SCA shareholders and, together with Anchorage, we are committed to finalising a certain proposal in an expedient manner.”
The news comes after ARN confirmed that its initial plans to close its takeover bid of SCA by 31 December would not go ahead, saying in an ASX update last month that SCA and its advisers have been granted “a further period of due diligence engagement to access the required information to progress its confirmatory due diligence”.
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Neil Griffiths is the editor of Mumbrella. He joined the company in October 2023.
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