The SCA Board has decided that the Indicative Proposal from ARN and Anchorage Capital Partners Pty Ltd is “not in the best interests of SCA shareholders” but they remain open to consider a revised offer.

The Board’s decision was based around “fundamental changes to the economics of the Indicative Proposal, including an increase in the leverage and reduction in the earnings base of ARN Newco, from that indicated by the Consortium in its original proposal.”  As a result it was felt that the value of the proposal undervalued SCA.

SCA Chair Rob Murray said:  

“We remain focused on continuing to optimise the audio ecosystem we have created across broadcast radio and digital audio. This is central to our strategy and our value proposition, and we are committed to converting our audience leading positions into sustainable growth and returns to our shareholders.”

ARN and Anchorage were seeking to acquire 100% of the fully diluted share capital in SCA for 0.753 shares in a reconstituted company, following re-allocation of SCA and ARN assets (ARN Newco), and 29.6 cents cash per share by way of a recommended scheme of arrangement.