SCA advisor gives Seven merger the go-ahead
SCA CEO John Kelly will move to head up audio in the merged entity
Independent experts employed by Southern Cross Austereo to audit its proposed merger with Seven West Media have given the deal an enthusiastic green light. The approval has been comprehensively rejected by investor Sandon Capital, which holds around 11.3% of SCA stock.
Financial advisory firm Kroll said the merger was fair, reasonable and in the best interests of SCA shareholders in the absence of a better offer. On Kroll’s analysis, SCA will be contributing 46.7% to 47.3% of value but will own 50.1% of the new entity. This sits on the higher end of what would be considered to be the “fair range” (42.2%-51.9%).
But Sandon founder and managing director Gabriel Radzyminski told Mumbrella the merger undervalues the company, moves away from a clean audio-only strategy and is designed to reduce the influence of investors such as itself.
