Southern Cross Media trying to tap market for $150m through Macquarie Capital: sources

The radio division in Southern Cross is the company’s strongest performer.

Southern Cross Media is attempting to tap the market for $150m at 8c per share through Macquarie Capital, say sources.

Shares last traded at 16c.

It comes after Southern Cross Media is understood to have rebuffed private equity funds making approaches to recapitalise the business.

It also comes after DataRoom reported this week that the regional radio and television business will tap the market for a small amount of equity and lobby its lenders for a reprieve from paying its loans back until normal trading conditions resume.

Southern Cross has been among the listed media groups hardest hit by investors, with its market value last worth about $127m, down from its 2020 high of about $726.7m.

Some believe the regional radio and television broadcaster, which delivered a half-year net profit of $20.4m and earnings before interest, tax, depreciation and amortisation of $67.5m, has been oversold.

The radio division in Southern Cross is the company’s strongest performer and some had earlier suggested that the group could be willing to sell its television operations for the right price.

Working for Southern Cross, which has $330.5m of net debt, is Luminis Partners.