ARN has reemerged with a fresh proposal for SCA now that Anchorage Capital Partners have pulled out of their previous consortium bid. They’re now after SCA’s Triple M stations and digital assets, offering ‘up to 0.870 ARN ordinary shares for each fully diluted SCA share subject to the satisfactory completion of due diligence.’

Both parties have issued media and ASX releases with SCA’s saying in part:

“SCA was only informed by ARN of its intention to withdraw its proposal on Saturday, 11 May 2024.
At considerable expense, SCA has engaged with the Consortium’s proposal for nearly seven months, during which time the Consortium has reconfirmed its proposal to SCA at least five times, most recently just seven business days ago. SCA is disappointed that the Consortium has now withdrawn its proposal.”

Which has more anger within it than I’ve read in a ASX release. Genuinely surprised also that SCA declared being ‘disappointed’ about the consortium, as it was, pulling out.

What appears to be at the crux of the weekend’s activities seems to be the a perceived dwindling in value of television assets. Network 10 is being lost to Mildura and also abandoning reality shows The Bachelor and The Masked Singer, both of which have featured talent from Nova, ARN and SCA.

There is also the increasing value of digital ones for ARN, with SCA Chair Heith Mackay-Cruise saying:

“our LiSTNR digital audio ecosystem delivered positive EBITDA for the first time in April and is on target to do so for the June quarter.”

Making the acquisition of the platform very desirable.

The next steps, according to ARN, are:

“ARN and SCA have been working collaboratively, are now substantially complete on mutual due diligence, and are progressed on transaction documentation. ARN remains committed to delivering an attractive and certain outcome to SCA shareholders at the earliest possible date, and to the extent the ARN Indicative Proposal is supported by the SCA Board, considers that a binding transaction could be entered into in coming weeks.
ARN looks forward to constructively engaging with SCA on the ARN Indicative Proposal. At this time, ARN shareholders do not need to take any action in relation to the ARN Indicative Proposal. ARN will keep the market informed in the event of any material developments.”