Antony Catalano and Alex Waislitz focus on more Southern Cross Media control

Domain Group founder Antony Catalano and Alex Waislitz’s Thorney Investment Group are now expected to lift their ownership interest in Southern Cross Media.

Domain Group founder Antony Catalano and Alex Waislitz’s Thorney Investment Group are now expected to lift their ownership interest in Southern Cross Media after the broadcaster rejected their proposal to merge the business with their media outfit Australian Community Media.

The pair have 14.5 per cent and, with the market value of Southern Cross Media only at $146m, amassing additional shares is unlikely to come at a major cost. Gaining a stronger interest in the business potentially will gain the pair boardroom influence over the company behind the Triple M network that ARN Media had earlier been bidding for.

Last week, Southern Cross Media said after a review of ACM in consultation with shareholders, it had decided not to pursue the merger proposal because while the digital and regional capabilities held some attraction, the assets did not align with its audio-focused strategy and would not create value.

It comes after Southern Cross, which owns both radio and regional television assets, announced on May 28 that ACM had proposed for it to buy 14 of its daily print and digital news publications and its agriculture division.

An earlier proposal was put to Southern Cross by ACM in November. That was rebuffed by Southern Cross, which said owning print assets was not consistent with its strategy.

Mr Catalano and Mr Waislitz purchased ACM in 2019 for $125m, or $115m excluding debt from what was then Fairfax (now owned by Nine), but it has since closed seven of its nine print production sites and is focused on growing its digital audience.

ARN Media was set to buy Southern Cross Media with partner Anchorage Capital Partners but after carrying out due diligence, Anchorage pulled out of the proposal.