Update on ARN’s bid for SCA


ARN Media Limited and Anchorage Capital Partners Pty Limited have today provided an update on their nonbinding indicative offer to acquire 100% of the fully diluted share capital of SCA.

ARN says under the Indicative Proposal, SCA shareholders would receive 0.753 ARN shares and 29.6 cents cash per SCA share.

“The Consortium remains open to working with SCA to structure part of the cash component of consideration as a pre-completion fully franked special dividend, which is expected to provide access to an additional value of 12.7 cents per SCA share from franking credits for eligible existing SCA shareholders.

 Following an initial period of due diligence engagement with SCA and its advisers, the Consortium has reconfirmed the Indicative Proposal to the SCA Board of Directors and has been granted a further period of due diligence engagement to access the required information to progress its confirmatory due diligence.

 The Consortium is also focused on progressing related transaction documentation in an efficient manner and, subject to the receipt of the required due diligence information, has an objective of delivering a certain proposal to SCA shareholders in early 2024.

 The Consortium remains confident that the Indicative Proposal represents a compelling value proposition for both ARN and SCA shareholders.

 The Indicative Proposal is subject to a number of conditions, including completion of satisfactory due diligence, transaction documentation and regulatory approvals. No binding agreement to implement the Indicative Proposal has been reached with SCA at this time and there is no certainty that a transaction will eventuate.

 The Indicative Proposal (and this announcement) is preliminary, incomplete, and non-binding and does not constitute a commitment or undertaking by the Consortium to proceed with the Proposed Transaction.”

ARN says it will continue to update shareholders as required.

In response, SCA recommends shareholders take no action in relation to the Indicative Proposal.

It says “The parties have not reached a binding agreement to implement the Indicative Proposal and have not agreed to commence preparation or negotiation of any transaction documentation. The Indicative Proposal is subject to several conditions, including satisfactory completion of due diligence currently under way, subsequent negotiation and execution of transaction documentation,
and regulatory approvals. There is no certainty that a transaction will eventuate.”

SCA says it, too, will continue to update shareholders as required.

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Ellen Handley
19 Dec 2023 - 9:46 am

I urge all SCA shareholders to join me in accepting the proposal by ARN.

A few less executives & accountants in Australian commercial radio is a very good thing.

Let’s end the continuing malaise of such an underperforming and inefficient business. Today’s ratings are another affirmation of this. B

19 Dec 2023 - 11:36 am

I hope this merger happens because then Kyle and Jackie can broadcast on 2Day Fm as well

Jason, Andrew Toppin from Mubarek Victoria
19 Dec 2023 - 12:56 pm

Hope SEN buys triple M and kiss whilst the new new company keeps box and gold

Good Onya
19 Dec 2023 - 4:04 pm

Ellen, I appreciate your perspective, but it’s important to acknowledge the substantial achievements demonstrated by SCA in today’s results. The data reveals SCA’s strongest performance since 2013, securing the top position in total radio share among people 10+. Notably, it has also claimed the number 1 spot for both its demographic targets on a national scale. Additionally, SCA boasts Australia’s leading podcast, H&A, further contributing to its success.

While it’s fair to recognize that certain segments may underperform, it’s essential to highlight that such challenges are prevalent across all Australian radio networks. SCA’s overall performance and the multitude of talented individuals within the organization contribute significantly to its success. While opinions may vary, the affirmation of today’s results provides a comprehensive picture of SCA’s achievements beyond any localized concerns, reinforcing its position as a powerhouse in the industry.

El Nuffy
20 Dec 2023 - 9:53 am

Some people who “comment” here really shouldn’t.


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