SCA fights back against board coup attempt
Southern Cross Austereo has fought back against an attempt to sack four of its board members, shoring up support among its big investors.
SCA made an announcement on the ASX this morning, noting the attempt by activist investor Sandon Capital and stating the current board had the backing of major holders.
Heith Mackay-Cruise
According to The Australian, chair Heith Mackay-Cruise received a letter from Sandon last Thursday, accusing the board of issuing dividends in order to win investor backing.
“We consider the decision to resume dividends to be a purely defensive move by the board; read in the context of our discussions regarding the need for changes at board level.”
The Sandon letter also criticises the board for setting unrealistically high share price goals for executive bonus pay.
Sandon Capital stated their intention to move a resolution to sack four non‑executive directors – Chair Heith Mackay‑Cruise, Ido Leffler, Carole Campbell and Marina Go.
But SCA said in the ASX announcement the current board had the backing of more than 50% of investors.
“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,” the statement read.
The board defended itself by referencing “strong momentum” this year, reduced costs, the dividend payout (set for the end of FY25) and the sale of its remaining TV licenses to Seven West Media.
The announcement also pointed out that SCA shares were up just under 40% from when Sandon bought its initial stake in October 2024.
“Given the current operating performance and the momentum of the business, the SCA Board and its major shareholders are of the view that it would not be in the best interests of all shareholders to support the proposed resolutions.”
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Heith Mackay-Cruise
Marina Go
Sandon Capital
SCA
SCA. Southern Cross Austereo
Southern Cross Austereo
I’m no Jimmy Buffet… but does ARN still own shares? And if so, if ARN plus Sandon equals more than 25%, we are expecting a vote against the remuneration report to cause a board spill anyway aren’t we?
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