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Given that an entity cannot have more than two radio stations in a particular licence area by virtue of section 54 of the Broadcast Services Act, BSA, suggests that three of the five radio stations from a combined SAC and ARN will need to be divested.
As a result, this site has intimated that entities other than ARN and SCA may be interested in purchasing radio stations as part of their own network in order to meet section 54 of the BSA.
https://radioinfo.com.au/news/the-radio-plot-thickens-in-sca-takeover-bid/
Since ARN and SCA are corporations, a mere amalgamation of the two entities is not an executive decision.
To amalgamate and divest requires more than an executive decision of the MD. It requires the approval of the board of directors, BOD.
Then given that the transaction, an amalgamation of two entities involving a major change in its activities, a meeting of the shareholders may be required
It also requires the approval to the shareholders especially where there is a substantial change of ownership.
https://content.allens.com.au/the-allens-handbook-on-takeovers-in-australia/shareholding-thresholds/
The question remains who will come out smiling?
Something to think about.
Anthony, Strathfield South, in the land of the Wangal and Darug Peoples of the Eora Nation.