As Southern Cross Media Group (SCA)‘s merger with Seven West Media (SWM) came to fruition at the end of last year, ARN, who had aspired to take over the former themselves, started to divest themselves of the 14.8% interest they purchased in June 2023. Part were traded just prior to the finalised merger and more on January 22, so that ARN ceases to be a substantial shareholder.

While the sales have netted ARN somewhere in the vicinity of $19million, the outlay for the network in the attempted takeover, legal twists over their ownership and shareholders and then the last minute withdrawal of Anchorage Capital Partners are more significant. The first divestment was at 75c a share, the second 66c. ARN purchased the interest at a $1.08 premium. Most telling, ARN’s share price itself has dropped in 12 months from 67c to, currently, 37c.

Of interest to the SCA /SWM newly merged entity which trades as SXL on the stock exchange, the second lot of shares traded by ARN appear to have been snapped up by Samuel Terry Asset Management, an activist investment firm of the same ilk as Sandon Capital Investments who bought shares in SCA in October 2024 seeing it as an undervalued asset and saying:

“(W)e consider radio has characteristics that make it a far more compelling medium than either print or television.”

Sandon did everything they could to try to stop the SCA / SWM merger, which they perceived as a ‘diworsification’ of the SXL business. Yet it still went ahead and Sandon have held onto their interest. They bought when SCA shares were 51c. Last year they climbed as high as 94c and currently sit at 65c.

Jen Seyderhelm is a writer, editor and podcaster for Radioinfo. Email [email protected]