ARN seeking review of Takeovers ruling it bought SCA shares in ‘unacceptable circumstances’
ARN Media is pushing back on a ruling that said it acted in “unacceptable circumstances” when purchasing Southern Cross Austereo shares.
The Takeovers Panel made its decision last week in regards to a move made by ARN in June. At the time, ARN bought 14.8 per cent shares in SCA via fund manager, Allan Gray.
However, the Takeovers Panels found that at the time, Allan 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.
The Takeovers Panel ruled that 6.83 per cent of that figure was in breach of the law.
ARN submitted a review application to the Takeovers Panel on Monday. Both ARN and SCA declined to comment when contacted by Mumbrella.
The news comes after Kyle & Jackie O signed a mega extension to their KIIS contract, which will ser the duo stay with the network until 2034.
Meanwhile, ARN’s takeover bid of SCA is still in play, however it is yet to be seen what impact the matter with the Takeovers Panel will have on proceedings.
Speaking to Mumbrella last week, ARN head Ciaran Davis said the Kyle & Jackie O deal has no relevance to the proposal.
“This has had no impact on [the bid], to be honest,” Davis said.
When asked if the target date of December to get the deal done with SCA was looking more likely given the news – and the fact that Kyle & Jackie O were rumoured to be considering a move back to the network they departed in 2013 – Davis was again tightlipped.
“Those conversations are ongoing. That’s remaining confidential for now.”
Listen to Davis’ comments on the latest Mumbrellacast here.
You’d imagine there’d be some introspection in the boardroom at the moment, this from the Takeovers Panel and being found in breach of ASX rules around the Kyle & Jackie O announcement. Are the Is being dotted and Ts crossed?
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