Southern Cross Media has announced capital management initiatives, including a share buy back, “focused on returning value to shareholders.”

The buy back will begin next month, aiming to purchase nearly 40 million shares, about 5.4% of the company’s value. The move is expected to improve the company’s  earnings per share.

SXL’s current share price is currently sitting at $1.14, almost 25 cents below the share price offered when the company merged with Austereo.

Southern Cross Austereo has also put on record that it intends to return 60-70% of profit in dividends to shareholders, with the next round of dividends and results expected in February next year.

The buy back and dividend payments will be funded from cash reserves, not borrowings, the company has assured its shareholders.