SCA coup attempt: Activist investor seeks ARN vote
Southern Cross Austereo’s activist investor Sandon Capital has applied for permission for ARN Media to vote in its upcoming spill against SCA’s board.
It is not known whether Sandon and SCA competitor ARN are aligned in Sandon’s attempt to remove chair Heith Mackay-Cruise, and directors Ido Leffler, Carole Campbell and Marina Go. Mumbrella has contacted ARN for comment.
SCA board member Marina Go
ARN is currently not allowed to exercise voting rights over 6.83% of its holding of SCA (total 14.8%) except in very limited circumstances. The portion was “frozen” last year because its acquisition breached takeover rules.
Sandon’s application to the Australian government’s Takeovers Panel was revealed when a Panel letter was posted to the ASX this morning.
“Sandon seeks a variation to permit the Relevant Shares to be voted on the board-spill resolutions and an end date be applied to the general voting restriction so that the Relevant Shares be able to be voted at SCA’s next general meeting,” the letter read.
“A sitting Panel has not been appointed at this stage and no decision has been made in relation to the request.”
SCA declined to comment on the matter.
SCA fought back publicly against Sandon’s attempt earlier this week, stating the current board had the backing of more than 50% of investors. Sandon itself holds over 5% of SCA.
“SCA notes that shareholders collectively representing more than 50% of its voting capital — Thorney Investment Group (and associates) (15 %), Spheria Asset Management (10 %) and Ubique Asset Management (10 %) — have confirmed they support the current board and management and intend to vote against the resolutions,” SCA’s statement read.
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