ARN Media given approval to retain its 14.8 per cent holding in Southern Cross Media

The owner of radio networks including KIIS FM and Gold has been given approval to keep its stake in rival radio network Southern Cross Media and progress with its takeover plan.

KIIS FM radio hosts Kyle Sandilands and Jackie 'O' Henderson.

ARN Media – the company that owns radio networks including KIIS FM and Gold – has been given the green light to retain its shares in Southern Cross Media and forge ahead with its takeover proposal.

In an announcement by the Takeovers Panel on Wednesday it outlined its latest decision that comes after ARN appealed a review of the declaration made that would have forced the company to sell a significant slice of its shares in Southern Cross.

The decision means ARN – which is led by chairman Hamish McLennan and chief executive Ciaran Davis – can retain its 14.8 per cent share holding in SCA and will no longer be required to sell down the 6.84 per cent of SCA shares which was originally ordered by the Takeovers Panel.

An ARN spokeswoman welcomed the decision and said in a statement: “We are happy with this decision and now look forward to accelerating the engagement with the SCA board.

“From what we have seen so far, we believe our proposal is a very compelling proposition for SCA shareholders and, together with Anchorage, we are committed to finalising a certain proposal in an expedient manner’.”

The initial decision requiring ARN to sell its stake was made after Southern Cross shareholder Keybridge Capital claimed that the shares purchased by ARN in June last year were done so illegally.

The Takeovers sitting panel included Richard Hunt (sitting president), Bruce Cowley and John McGlue and their reasons for making their decision will be published at a later date.

ARN is home to some of the country’s most popular radio programs including Sydney breakfast duo Kyle Sandilands and Jackie “O” Henderson who air on KIIS 1065 and signed a lucrative 10-year contract last year worth more than $20m.

Their program will also be heard on Melbourne airwaves this year but a date has yet to be determined.

ARN is the home to 58 radio stations across 33 markets, 46 DAB+ ­stations and also has a digital entertainment platform called iHeartRadio.

Southern Cross Media, led by managing director and chief executive officer John Kelly has 99 stations across the Hit and Triple M networks and also has a growing digital platform, LiSTNR.

A SCA spokeswoman was contacted for comment.