Southern Cross Broadcasting has announced an offer
to acquire all the shares of Southern Star Group Limited.

Southern Star is Australia’s largest film & television production and distribution group. The Offer is subject to certain conditions, including Southern Cross acquiring at least 90% of the outstanding shares in Southern Star. The Board of Southern Star has recommended the offer to shareholders.

Southern Cross will offer Southern Star shareholders a total of 7,128,000 Southern Cross convertible preference shares for all of the shares in Southern Star, including those issued on exercise of Southern Star options.

The face value of the Offer plus the special dividend component values Southern Star at $99.1 million or $0.866 per share, assuming the exercise of all options.

Southern Cross’ radio assets are only a small part of its business. The major part of the business is regional television. This deal puts Southern Cross Broadcasting more firmly at the core of screen production and expands the asset base to protect the company from downturns in any one of its asset groups.