Southern Cross Media rejects proposal by Australian Community Media to acquire assets

Southern Cross Media Group has rejected a deal by Australian Community Media to acquire some of its key print and digital assets.

Southern Cross Media Group managing director and chief executive officer John Kelly.

Southern Cross Media Group has rejected a proposal from Australian Community Media to acquire some of its assets.

The media company, led by chief executive officer John Kelly, said after extensive investigation into the proposal and consultation with its major shareholders it had rejected ACM’s proposal.

“Southern Cross Media Group Limited announced on 28 May 2024 that it had decided to investigate whether a proposal from Australian Community Media (ACM) for SCA to acquire certain assets of ACM would align with SCA’s strategy and be in the best interests of SCA

shareholders,” the SCA update to the ASX on Thursday said.

“Following review with ACM and consultation with major shareholders, SCA has decided not to pursue ACM’s proposal.”

The proposal by ACM, led by co-owner and executive chairman Antony Catalano, would have included acquiring a portfolio of print and digital news publications and also its agricultural division.

“SCA has concluded that the relevant assets do not align with SCA’s audio-focused strategy and would not create value for SCA shareholders,” the SCA announcement said.

“The SCA board therefore considers it would not be in the best interests of SCA shareholders to pursue ACM’s proposal.”

ACM owns publications including The Canberra Times, Newcastle Herald, Illawarra Mercury, Ballarat’s The Courier and the Bendigo Advertiser.

The latest move by SCA comes after the proposed tie-up between SCA and ARN Media – headed up by CEO Ciaran Davis – was derailed when private equity firm Anchorage Capital Partners last month rejected a plan alongside ARN Media to take over SCA.