Source: Michael Bodey, The Australian
THE
first major media deal since the contentious Howard Government’s media
reform packages was introduced is one step closer to completion.
The
Macquarie Media Group’s $1.35 billion takeover bid for Southern Cross
Broadcasting and nine regional stations owned by Fairfax has been given
the go-ahead by the Australian Competition and Consumer Commission,
subject to a number of undertakings.
Any further movement will have to wait until the vote on the
takeover offer by Southern Cross shareholders tomorrow. The bid is
supported by the Southern Cross board and key shareholders.
The approval by the ACCC was expected.
Nevertheless, Fairfax Media in particular has been hamstrung by its
inability to move with any certainty on major changes required at
Southern Cross’s metropolitan radio stations.
The most pressing concern is finding a replacement for 2UE’s John
Laws in Sydney and renegotiating contracts for Derryn Hinch, Neil
Mitchell, Steve Price, Peter FitzSimons and Mike Carlton.
Fairfax Media has yet to announce who will head its radio assets or offer any strategic plan.
Graham Mott, group general manager of Southern Cross’s radio
division, is tipped to move to the new entity to provide experience and
stability.
Fairfax spokesman Bruce Wolpe said it would be wrong to pre-empt
Friday’s vote or other steps in the acquisition process, which is
expected to close in early to mid-November. He said Fairfax Media
"would be in a position to discuss and detail our plans then".
MMG’s acquisition, and subsequent on-selling of Southern Cross’s
radio stations and Southern Star TV program production and distribution
arm to Fairfax Media, is subject to MMG’s undertaking to divest itself
of its stations 7LA in Launceston and both commercial radio stations in
Queenstown and Scottsdale.
While the ACCC identified a substantial lessening of competition in
those areas, the divestments in Queenstown and Scottsdale were required
mainly to maintain the commercial viability of those assets. The ACCC
also approved the acquisition of Fairfax Media’s nine regional stations
by MMG following the MMG’s previous undertaking to sell 4BU in
Bundaberg, Magic FM and 5CC in Port Lincoln and Magic FM and 5AU in the
Spencer Gulf.
An independent manager will be appointed to run the stations during the divestment process.
The Government’s new media rule that there must be four media
"voices", or separate owners, in each regional market complicated the
deal for MMG, and renewed speculation the group might be interested in
acquiring Network Ten.
MMG managing director Alex Harvey said: "We believe that the offer
to Southern Cross shareholders represents full and fair value and look
forward to the shareholder vote on Friday.
"Should the transaction be successful, the combination of Macquarie
Regional Radioworks and Southern Cross TV will create Australia’s
leading regionally focused media business."
The ACCC also accepted an undertaking that MMG renege on the
proposed deal with Fairfax Media and sell Southern Cross Syndication
and related assets to another independent party.
"This undertaking addresses the competition concerns that would
arise in the event that MMG retained Southern Cross Syndication,
despite its intention to on-sell the assets to Fairfax," ACCC chief
Graeme Samuel said.
Popularity: 1%
Leave a Comment