ARN looks to accelerate SCA takeover proposal after major ruling overturned

ARN has announced it is looking forward “to accelerating the engagement with the SCA board” on its takeover proposal, following a major ruling being overturned today.

Late last year, the network lost an appeal to overturn a decision that it bought shares from radio rivals Southern Cross Austereo in “unacceptable circumstances”. In June, ARN bought 14.8 per cent shares in SCA via fund manager, Allan Gray. At the time of the purchase, Gray had 21.71 per cent voting power in SCA, as well as 20.04 per cent in ARN; meaning at the time ARN purchased the shares, its voting power in SCA increased to 31.24 per cent.

In November, the Takeovers Panel ruled that 6.83 per cent of that figure was in breach of the law which ARN soon appealed.

However, on Wednesday, the panel made new orders on the matter, which will see ARN allowed to retain its 14.8% holding in SCA, and not have to sell the 6.83% shares.