SCA knocks back latest ARN takeover proposal: ‘Provides downside for shareholders’

Southern Cross Austereo (SCA) announced on Wednesday that it has knocked back ARN Media’s revised takeover bid.Under a new proposal, ARN would acquire the same radio assets as before, plus assume 100% ownership of the combined digital audio assets of ARN and SCA.

SCA shareholders would receive up to 0.870 ARN ordinary shares for each fully diluted SCA share, plus would retain their shareholding in SCA, or receive their equivalent shareholding in a newly listed demerged entity that would hold the radio and television assets previously expected to be acquired by ACP under the Consortium Proposal.

However, SCA confirmed in an ASX statement that it will not proceed with the revised offer, saying it would “involve significant costs to break up SCA’s highly networked and integrated audio platform”.

“The alternative proposal provides downside for SCA shareholders, even if the execution challenges could be overcome,” chair Heith Mackay-Cruise said.

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