Seven West acquires shareholding in ARN

Seven West Media Chairman Kerry Stokes

Five months after the Australian Radio Network (ARN) acquired a 14.8% interest in Southern Cross Media Group Limited (SCA) it has been announced today that Seven West Media Limited (SWM) has acquired the same (14.9%) in ARN, making it now a party of five in the ongoing who will take over who radio network saga.

SWM has also done a cash-settled equity swap with Barrenjoey Markets Pty Limited which gives them a further 5.0% in ARN and makes them the largest shareholder.

This possibly means that Seven West could take over the SCA TV stations, and ARN and Anchorage Capital Partners Pty Limited (ACP) who they went in together with to put the non-binding indicative offer in to acquire SCA, could perhaps split Triple M and Hit between them based on media ownership laws, regulatory approval, other terms and conditions and the unanimous recommendation of the SCA board.

SWM Chairman, Kerry Stokes told the ASX:

“Seven West Media has a disciplined approach to value creation in the media sector. We believe that this strategic holding presents strong value for our shareholders in light of sector consolidation activity.”

SWM Managing Director and Chief Executive Officer James Warburton added:

“SWM’s objective is to be Australia’s most connected news, sport and entertainment brand. Our investment in A1N (ARN) aligns with our strategic pillar of partnering for growth, and we look forward to continued collaboration across our two companies.”

This is counter to last week’s proposed merger of Australian Community Media with SCA.

GfK Radio 360 Survey 7 is due out this Thursday November 16 where all eyes will be on SCA station performances and whether KIIS1065 will stay aloft the Sydney and breakfast markets. Maybe lucky sevens all around for ARN’s takeover hopes.