ARN Media Limited and Anchorage Capital Partners Pty Limited agreed to acquire 85.20% stake in Southern Cross Media Group Limited (ASX:SXL) for approximately AUD 210 million on October 18, 2023. ACP intends to fund all cash consideration offered to SCA shareholders under the Indicative Proposal. ACP has access to multiple sources of capital, including from its investors (through both funds managed by ACP and co-investment), and third parties.

ACP is currently investing from its recently raised Anchorage Capital Partners Fund IV which has undrawn and available commitments of over AUD300 million. ARN intends to fund its portion of consideration under the Proposed Transaction through the issuance of ARN scrip to SCA shareholders. Given our combined financial resources, the Consortium will not require a financing condition in the Scheme Implementation Deed.

The Indicative Proposal is subject to the unanimous recommendation of the SCA Board, due diligence, shareholder and regulatory approvals from both the ACCC and ACMA, and other terms and conditions. The Board of SCA will consider the Indicative Proposal and has appointed Grant Samuel as its financial adviser and Corrs Chambers Westgarth as its legal adviser to help assess the Indicative Proposal. SCA will update shareholders as required.

The Consortium has appointed Jefferies Australia as financial advisor and Gilbert + Tobin as legal advisor in relation to the Indicative Proposal. The Consortium has assembled a team of external advisers to assist with our due diligence and transaction execution. These include Jefferies Australia as financial adviser, Gilbert + Tobin as legal adviser, and KPMG and PwC as accountant and tax advisers in relation to the Proposed Transaction.

SCA has appointed UBS as its financial adviser and Corrs Chambers Westgarth as its legal adviser. As of March 15, 2024, ARN Media Limited and Anchorage Capital Partners Pty Limited revised the offer by increasing the share exchange ratio such that the consideration comprises up to 0.87 shares.