Hedge funds like what they hear at Southern Cross

Microphone and mixer at the radio station studio broadcasting news. iStock

Don’t be surprised to see hedge funds starting to turn up on the register of Southern Cross Media Group.

There’s talk in the market that there are some opportunistic funds out of Asia giving serious thought to buying a major stake in the Triple M and Hit radio network owner, as its market value languishes around $144m and its share price 60c – almost half the level it was at a year ago.

Obvious candidates are funds such as Asia-based Black Crane, which has owned more than 5 per cent in Sky Network Television in New Zealand – a business that needed to undergo a major recapitalisation.

It has also invested in other distressed targets in Australia, such as MMA Offshore and Emeco.

Hedge funds could force change at the broadcaster that has been among the largest casualties during 2024 from weak market conditions.

Southern Cross offloaded television licences in December to Network 10, announcing the transaction several days after it said it had refinanced its debt facilities.

The way forward for Southern Cross will be interesting this year after a deal proposed last year by rival ARN Media and Anchorage Capital for a buyout collapsed.

All eyes have been on shareholder and Australian Community Media owner Antony Catalano, who is considered a possible buyer and has bid previously.

SCA, which made a loss last financial year, has 99 radio stations, including LiSTNR, the Hit Network and Triple M brands, and a suite of regional TV assets across Central Australia and in the regional areas of the eastern states.