Anchorage Capital Partners, a Sydney-based private equity turnaround specialist, has partnered with Australian media company ARN Media to bid for Southern Cross Media.
The bid values Southern Cross Media at A$330 million, the Sydney Morning Herald reported on Wednesday.
Southern Cross Media considers the bid “unsolicited, complex, and highly conditional”, according to an Australian Securities Exchange (ASX) filing by the firm. The company has recommended that its shareholders take no action regarding the bid.
The Board of Southern Cross Media will consider the proposal and has appointed Grant Samuel as financial advisor and Corrs Chambers Westgarth as legal advisor.
Southern Cross Media is one of Australia’s leading media companies reaching more than 95% of the Australian population through its radio, television, and digital assets.
If the acquisition is successful, the assets will be split between ARN Media and a new company formed by Anchorage Partners.
Under the proposal, ARN Media will operate 10 metro and 88 regional radio stations, will have complete ownership of two stations in Canberra and its own digital audio business, while Anchorage partners will own and operate a separate network of eight metro, 35 regional radio stations and Southern Cross’ digital audio and television business, as per the non-binding indicative proposal.
Anchorage Capital Partners is a specialised private equity firm that invests in businesses operating below their full potential or undergoing a significant transformation. It invests in companies which have reported revenues of over $100 million and located in Australia, New Zealand or Southeast Asia. It partners with management teams via control investments to turn around companies.
Anchorage Capital agreed to buy New Zealand-based healthcare provider Green Cross Health’s community health division for $31 million in February this year.
The PE firm had also acquired the refrigerated logistics division of Australian automotive retail and logistics firm Automotive Holdings Group (AHG) for A$100 million ($65 million) in 2020.