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.
Yes, its not good optics for certain people over at ARN. There is a distinct air of desperation starting to permeate this space. Almost as though reputations are on the line.. Maybe ARN should employ the online shopping guy to spruik the deal.
“Order now and we’ll double the offer!!”
It’s becoming farcical and in the meantime, ARNs share price continues to languish near all time lows.
Two knockbacks and a pullout in the life of this deal and it was a fait accompli if you read most trade articles in the last seven months. Worth reflecting upon.
There were some fighting words in this latest ASX announcement too.
The SXL board is clearly frustrated by ARNs approach and unless ARN can pull a rabbit out of its hat, this deal looks as dead as the future of terrestrial TV!
Maybe the only hope for ARN now is to keep buying SXL shares until they get a controlling stake. But then that would likely run foul of the regulator..