Speculation about SCA Regional TV assets may be premature

An article in The Australian newspaper has reignited speculation that Southern Cross Austereo might sell its regional television network.

But the news is not really new.

It dates back to early last year when Anthony Catalano and SCA had talks about the regional tv network but could not agree on price. At that time the financial advisory firm Grant Samuel was hired to look into a wider corporate agenda, which included a possible tv assets sale. So far no credible bidders have emerged offering a price that would be beneficial to SCA shareholders.

With Catalano planning another stock exchange listing of his regional media assets, the speculation may boost the prospects of the listing but may not eventuate in any significant change to the previously unacceptable offer. The Australian reports that SCA wants $1o5 million for its regional tv stations.

The report by Bridget Carter in The Australian’s Data Room column says:

“Mr Blackley is known to have been open to a possible sale of its television arm, leaving it as a radio broadcaster and audio company and there has been suggestions in the market that the assets have been unofficially on offer at the right price…”

If SCA did eventually sell its tv assets, the company, which already makes more money from its audio assets than its tv stations according to last year’s Annual Report, would move more towards being an audio entertainment company, with radio stations, podcasts and music channels on offer to advertisers and audiences.


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