Southern Cross Media is believed to be retaining its regional television unit, with sources suggesting offers came in below its expectations.
The official line from the listed regional radio and TV broadcaster is that nothing has changed from its original position, where it would assess strategic options for its television business after receiving unsolicited offers and expressions of interest. However, sources think the unit will be retained after offers came in below expectations in the first round of a sale process.
Southern Cross Media hired Grant Samuel to run the process.
Among the suitors that lined up to lob first-round offers were Allegro Funds Management, Anchorage Capital Partners and Seven West Media, which bid for only the Tasmanian operations.
First-round bids were due on May 13. The bidders had been provided with limited information in a data room before being offered more detailed material down the track, but had not been invited back.
Allegro and Anchorage target turnaround opportunities and have looked at television assets in the past.
Anchorage made efforts to buy Prime Media, now owned by free-to-air broadcaster Seven West Media.
For the year to June, Southern Cross saw EBITDA for its regional television unit soar by 59.7 per cent to $38.1m. For the six months to December, it hit $17.5m, up 27.3 per cent.
Sources say the company wants a price about three times the division’s EBITDA.
Some believe CBS-owned Network Ten could buy the television unit. Ten has a two-year affiliation deal, after previous partner Nine Entertainment opted to join forces with Bruce Gordon’s WIN.
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