SCA rejects ACM purchase proposal
The Southern Cross Media Group has rejected a proposal from Australian Community Media for SCA to take over a number of its key print and digital news assets, finding it wouldn’t align with SCA’s audio-led strategy, or be in the best interests of SCA shareholders.
“Following review with ACM and consultation with major shareholders, SCA has decided not to pursue ACM’s proposal,” an ASX update reads.
“ACM’s proposal would have involved SCA acquiring a portfolio of ACM’s key print and digital news publications and its agriculture division. ACM’s digital and regional capabilities and content hold some attraction for SCA.
“However, SCA has concluded that the relevant assets do not align with SCA’s audio-focused strategy and would not create value for SCA shareholders. The SCA Board therefore considers it would not be in the best interests of SCA shareholders to pursue ACM’s proposal.”
“SCA has appreciated the constructive and open engagement from ACM’s leadership and management team over the past four weeks and wishes ACM well for its ongoing digital transformation. SCA recommends shareholders take no action in relation to ACM’s proposal.”
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