SCA eyes NZME radio assets

Staff Writer

SCA has confirmed its interest in acquiring the radio assets of NZME.

“SCA’s interest in NZME’s radio interests is consistent with SCA’s focus on operational effectiveness in its existing businesses and investing in new growth opportunities that leverage its expertise in audio and entertainment,” the company said in a statement.

As first reported by The Australian, SCA is only willing to agree to a deal if NZME can separate its radio assets from the rest of the business, namely its print division.

However, NZME is currently in exclusive negotiations Fairfax Media over a possible merger. NZME is reportedly looking to acquire Fairfax’s NZ assets for AU$53 million.

While no official agreement has been made and with the potential merger facing approval from the New Zealand Commerce Commission, it stands to dent Southern Cross’ prospects with NZME.

Exclusivity provisions prohibit NZME from entering formal discussions with SCA, as per the merger agreements made with Fairfax. These provisions will likely delay any progress with SCA until talks between NZME and Fairfax come to a close.

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