SCA deal would give ARN a national footprint

TLDR version: ARN and Anchorage Capital Partners (ACP) have made a joint offer for Southern Cross Austereo(SCA) that will see the two bidders carry off different parts of the SCA network. ARN gets an expanded radio network with national reach. ACP gets a smaller radio network, but also gets SCA’s TV assets. A new shared platform will deliver digital audio services, reducing overall capex and operating costs. While we do not have all details of the deal, the structure appears to meet all regulatory requirements. The deal gives both ARN and SCA shareholders a more rational structure for radio. A future tie-up between Ten and SCA’s TV assets remains an option.

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