Nine Sells Stake in SCA

Nine Entertainment Co has offloaded its stake in Southern Cross Media Group, the parent behind SCA.

Nine will make a tidy profit after selling its entire 9.99% stake in SCA for $1.54 per share, after acquiring it in March this year at a price of $1.15 a piece.

Nine CEO Hugh Marks said in a statement to the ASX: “Our relationship with Southern Cross has never been better. The early performance of our new affiliate agreement has surpassed our expectations, and we look forward to a long and prosperous relationship between our two companies.”

Southern Cross Media and Nine signed a new five-year regional television affiliate agreement in July.

Interesting to see who has more bang for buck in terms of valuations. Nine has market capitalisation of $849.59 million, compare that to  Southern Cross Media Group  with a market capitalisation of $1.30 billion based roughly on this week’s share prices.

Who will acquire who if the media laws change?