SCA decides not to pursue Australian Community Media proposal

SCA has announced it won’t be pursuing a proposal to acquire some of Australian Community Media’s assets.

The deal would have seen SCA take on a portfolio of ACM’s key print and digital news publications.

SCA confirmed late last month that it would investigate the proposal, to determine if it aligned with its strategy and whether would be in the best interests of SCA shareholders.

Following review with ACM and consultation with major shareholders, SCA in its statement says “ACM’s proposal would have involved SCA acquiring a portfolio of ACM’s key print and digital news publications and its agriculture division. ACM’s digital and regional capabilities and content hold some attraction for SCA.

However, SCA has concluded that the relevant assets do not align with SCA’s audio-focused strategy and would not create value for SCA shareholders. The SCA Board

therefore considers it would not be in the best interests of SCA shareholders to pursue ACM’s proposal.

 SCA has appreciated the constructive and open engagement from ACM’s leadership and management team over the past four weeks and wishes ACM well for its ongoing digital transformation.”

SCA recommends shareholders take no action in relation to ACM’s proposal. SCA says it will continue to update shareholders as required.