Until October 29 the ACCC is inviting interested parties to have their say on the proposed acquisition by Southern Cross Media Group Limited (SCA) of all the issued shares in Seven West Media Limited (Seven). Sandon Capital certainly will do so.
As it stands SCA proposes to acquire 100% of the issued share capital in Seven by way of a scheme of arrangement. Under this proposed acquisition, Southern Cross shareholders will own 50.1% of the combined entity and Seven shareholders the remaining 49.9%.
The Chairman of SWM, Kerry Stokes AC, said at the news of the proposed merger:
“The combination of these two companies brings together the best creators of media content in the country, delivering significant financial and strategic benefits for SWM shareholders.
“This is an important merger, as the combined company will be better able to serve both metropolitan and regional viewers, listeners, partners and advertisers. It will add strength to each of the combined businesses’ television, audio, digital and publishing operations across the country.”
Sandon Capital however, the Australian-based activist investment firm who buy shares in companies they perceive as undervalued and underperforming companies to influence their boards to take action called the same transaction a ‘nil-premium reverse takeover‘, that is SCA were buying back the same moribund TV assets they had recently sold.
Sandon, who have 11.3% stake in SCA executed notices under section 203D of the Corporations Act to SCA in May seeking to remove non-executive directors Heith Mackay-Cruise, Ido Leffler, Carole Campbell and Marina Go at the next general meeting. That general meeting will be held on Monday November 24.
The ACCC have gotten involved due to the acquisition potentially having the effect of substantially lessening competition in a market.
This is considered a public matter. Responses must be submitted by no later than 2pm AEST on 29 October 2025 and emailed to [email protected] with the title: Submission re: Southern Cross – Seven. You can also discuss the matter with ACCC officers via that same email.
Updates regarding the ACCC’s investigation will be available on December 18, after the SCA and SWM AGMs (Thursday November 6), and on the ACCC’s Public Mergers Register.
Jen Seyderhelm is a writer, editor and podcaster for Radioinfo