ARN dumps Southern Cross as merged stock loses 18.5% of market cap

Nathan Jolly

January 28, 2026 11:13

ARN dumps Southern Cross as merged stock loses 18.5% of market cap

ARN is getting out of the Southern Cross Media business (ARN CEO Michael Stephenson pictured) (Mumbrella)

ARN Media is no longer a substantial shareholder in its rival Southern Cross Media, after selling another tranche of stock. This comes as the market value of the merged company sinks to around $100m less than Seven West Media and Southern Cross Austereo were worth before their union.

ARN informed the market just before close on Tuesday afternoon that it had sold 7.2 million Southern Cross Media shares, worth $4.79m, to boutique investment management company Samuel Terry.

The sale occurred on January 22, and saw Samuel Terry’s voting power in Southern Cross move from 6.2% to 7.7%, and ARN’s holdings fall under the 5% substantial holder threshold.

The shedding of Southern Cross stock by ARN started on December 4, when it sold 19.13m shares, worth $14.35m. This saw ARN’s holdings fall from the 14.8% it had held for 18 months, to 6.83%.

Holding less than 5% of Southern Cross stock now effectively allows ARN to divest its total holdings without disclosure. The only exception would be if it sells more than 1% to a substantial SXL holder in any single trade, in which case the latter is required to inform the ASX.

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The combined market value of Southern Cross Austereo and Seven West Media has dived since the merger was first announced. The deal saw SWM shareholders given 50.1% of the combined company. The SWM ticker was delisted and the combined business now trades under SXL.

Seven West Media’s analysis on the proposed merger, provided to shareholders on November 12, showed the combined market cap value of the merged entity to be $423m. The scheme booklet from Seven urged shareholders to accept the deal.

“The combination is expected to create a more liquid stock with a broader shareholder register and enhanced market capitalisation of approximately $423m,” Seven wrote in the booklet.

Mumbrella’s Unmade Index data shows that at market close on the day the booklet was dated, November 12, the combined markets cap of Seven and SCA had already declined to $399.6m.

Oh those happy days: SXL and SWM on the Unmade Index 12 November 2025, when they were worth a lot more apart

Fast forward to last night’s Unmade Index, and Southern Cross Media (SXL) is sitting at $325.6m, or just under $100m less than shareholders were told to expect. Even compared to the lower, more accurate combined market caps from November 12, the loss is $74m, or 18.5% percent.

ARN bought its 14.8% of Southern Cross in June 2023, paying $38.3m for 35.5m shares, valuing each share at roughly $1.08.

The December 4, 2025 sale valued SXL at 75c/share, while the January 22, 2026 sale went through at just 66c/share, meaning ARN lost over $9m on those two sell-offs alone.

ARN’s mid-November ASX update noted it had “shifted its strategy to better align with evolving market dynamics” and promised “a simplified operating model”, as well as “the pending sale of non-core assets.”

Mumbrella has contacted Southern Cross Media for comment.