Media companies ACM - the publisher of this masthead - and Southern Cross Media Group have announced a proposal to create what ACM co-owner and executive chairman Antony Catalano describes as "one of the most dynamic and exciting media companies in the country".
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Southern Cross (SCA) informed the Australian Stock Exchange on Tuesday that it had entered into a due diligence period with the intention of acquiring ACM assets, including the company's portfolio of 14 daily print and digital news publications, key regional/metro titles and its agriculture division.
In its statement to the ASX, SCA said that its board had decided to examine ACM's proposal "to determine whether it would align with SCA's strategy and have the potential to create value for and be in the best interests of SCA shareholders, particularly in relation to prospective value in ACM's digital capabilities and content, regional focus, and other potential synergies".
In a note to ACM staff shortly after the ASX announcement, Mr Catalano said: "Should the proposed transaction proceed it will create a dynamic multimedia company across audio, digital, print and TV."
"The merged entity would be the number one audio network in Australia and the country's largest regional media company," he said.
"It would also include Australia's leading agricultural media business. It would mean that [co-owner] Alex Waislitz and I would become substantial shareholders of SCA, and reaffirm our commitment to growing our vitally important media company for the benefit of our staff, our customers and all Australians who turn to our media daily as their trusted voice."
SCA's statement to the ASX said the proposal was "materially different to ACM's previous proposal that was rejected by SCA in November 2023".
"Discussions between SCA and ACM are preliminary and there is no certainty that a transaction will eventuate," SCA told the ASX.
SCA has recently been courted by radio rival ARN as part of an unsuccessful merger plan that would have brought SCA's popular Triple M radio stations together with ARN's KISS radio stations in Sydney, Melbourne, Brisbane, Adelaide and Perth.
Mr Catalano said the opportunities for consumers and advertisers presented by ACM's alternative proposal for a new combined SCA-ACM business were "boundless".
"In the merged entity, our editorial content will be more important than ever, and it will now be able to be shared across multiple platforms to a huge network of regional and metropolitan audiences," he told staff.
"Alex and I have strived during the past five years to position ACM for growth. Significant work has been done by everyone at ACM to transition our business into a robust, modern and diversified media company. The changes we have made are now recognised industry-wide. This proposed deal would position ACM brands for further growth through the creation of one of the most dynamic and exciting media companies in the country."
Mr Catalano said the proposed deal "would position ACM brands for further growth through the creation of one of the most dynamic and exciting media companies in the country".
ACM content could "come to life on SCA's highly successful streaming product, LiSTNR, as well as on traditional audio and TV".
"Our advertising teams will be able to provide their customers with truly end-to-end solutions for all of their marketing needs." Mr Catalano said. "And, most importantly, the merged entity will greatly improve our marketing capabilities that will drive digital subscription growth, as well as growth in LiSTNR and both organisations' traditional assets.
"It will turbocharge the growth of ACM's adjacent businesses such as ViewJobs, Farmers' Finance Australia, FarmBuy and our events division."
Through the due diligence period both parties will review the strategies and financials of each other's businesses to determine how the proposed merger would be completed.
Mr Catalano said the process was "expected to be relatively short, with all parties aiming to have a decision by the end of June".
The publisher of this masthead, ACM's network of major subscriptions news sites and 14 daily newspapers includes The Canberra Times, Newcastle Herald, The Border Mail, Ballarat's The Courier, Warrnambool's The Standard and Launceston's The Examiner, as well as industry-leading agricultural weeklies The Land, Queensland Country Life and Western Australia's Farm Weekly.
Once part of the former Fairfax Media group that was absorbed into Nine Entertainment in 2018, ACM has been privately owned since July 2019 by Mr Catalano and business partner Mr Waislitz's ASX-listed Thorney Investment Group.
