Australia’s $700 million radio industry looks likely to be radically reformed after Southern Cross Austereo, the owner of the Hit and Triple M networks, said it would accept a takeover offer from ARN Media, the owner of the KIIS and Pure Gold stations., who have called for the company’s chairman Rob Murray to step down and demanded the takeover progress, the board said on Monday that it would consider accepting ARN’s new, higher offer.
On Monday, Southern Cross said it had reviewed the latest offer – and spoken with shareholders – and would start negotiations with the ARN and Anchorage consortium “with the opportunity to finalise its proposal, on the basis that the terms reflect an exchange ratio of not less than 0.87 ARN Newco shares per fully diluted SCA share, together with the existing proposed 29.6 cents cash per share”.