‘Several parties’ circle to buy Southern Cross Austereo’s regional TV network
Southern Cross Media Group Limited released its television strategy which included the announcement several parties have been in discussions to potentially buy SCA’s regional television network.
The company said it received unsolicited approaches from these parties indicating potential interest in acquiring SCA’s television assets.
SCA said in a statement: “The approaches, which are non-bonding and incomplete, do not include details of timing, price, or conditions, There is no guarantee that any of these approaches will result in a transaction.
“With the assistance of its financial adviser, Grant Samual, SCA will continue to assess strategic options for its television business, including engaging with interested parties regarding a potential sale, for the benefit of the shareholders. The Board will continue to update shareholders as appropriate.”
In February, The Australian hinted that media entrepreneur Antony Catalano was a likely bidder, while others in the running are likely to include the CBS-owned Network Ten and opportunistic private equity firms such as Allegro Funds, Anchorage Capital Partners and Platinum Equity.
In February, the company reported in its last financial results that it makes more revenue from its audio assets that its television assets.
Its television EBITDA (excluding JobKeeper and PING) grew 27.3% to $17.5 million. Group operating expenses of $213.3 million were down 2.6% or $6 million. Revenue-related expenses reduced from 30% to 25% of revenue, primarily as a result of the lower television affiliation fees payable to Network 10. Ongoing investment in scaling LiSTNR and the digital audio business saw non-revenue related expenses increase by 5.3% to $148.6 million.
The Australian previously reported SCA wants $105 million for the division of its regional TV assets.
SCA also announced an on-market share buy-back of up to $40 million.
SCA said with modest gearing and consistent cash flow generation expected to continue, the “Board has approved the buy-back to enhance shareholder returns. SCA will fund the buy back from existing cash reserves and debt facilities, while continuing to invest in SCA’s digital audio strategy to grow audience and revenue opportunities”
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