The media network released its television strategy which indicated potential interest in the regional television assets.
Southern Cross Austereo (SCA) today announced a new television strategy, which included the announcement several parties have been in discussions to potentially buy SCA’s regional television network.
The company said these parties made unsolicited approaches which remained non-binding and incomplete, and did not include details of price, timing or conditions for acquiring SCA’s regional assets.
SCA asserted that there was no guarantee that any of these approaches will result in a transaction.
The release also said:
“With the assistance of its financial adviser, Grant Samuel, SCA will continue to assess strategic options for its television business, including engaging with interested parties regarding a potential sale, for the benefit of shareholders.
“The Board will continue to update shareholders as appropriate.”
Speculation about SCA selling its regional TV assets has been circulating for some time, with the most recent discussion stemming from a February article by The Australian.
The article suggests likely bidders would be media entrepreneur Antony Catalano, who owns publishing company Australian Community Media, Paramount ANZ (previously 10 ViacomCBS), or ‘opportunistic’ private equity firms such as Allegro Funds, Anchorage Capital Partners and Platinum Equity.
Catalano and Seven West Media had previously walked away from a deal to buy these regional assets, as reported by The Australian, but neither party could reach an agreement on price. Seven have since bought regional assets from Prime Media.
With new information now indicating another round of discussion has begun with various parties, it would be fair to assume the likely bidders previously involved are approaching SCA on this occasion.
According to last year’s Annual Report, SCA makes more revenue from its audio assets than its television assets, so selling the television aspect would see the company focus on their audio entertainment (radio stations, podcasts, music channels).
The Australian previously reported SCA wants $105 million for the division of its regional TV assets.
Seven can’t buy it all but I imagine they’d want Tasmania, Darwin, Spencer Gulf/Broken Hill.
Hi Leigh – I’m pretty sure that SCA won’t want to split it, and that Paramount ANZ would be a frontrunner for that reason.
Maybe Imparja will finally expand and by some or all?