Seven West Media to Acquire SCAs Remaining TV Assets

Key points

• SCA to sell remaining TV assets in Tasmania, Spencer Gulf, Broken Hill, Mt Isa, Darwin and Remote, Central and Eastern Australia to Seven West Media
• Sale expected to complete on 30 June 2025
• SCA to be fully divested of all television assets, aligning with its 'All About Audio' strategy

Full summary

Southern Cross Media Group Limited (SCA) has executed a binding agreement for the sale of its remaining television assets in Tasmania, Spencer Gulf, Broken Hill, Mt Isa, Darwin and Remote, Central and Eastern Australia to Seven West Media (SWM). The sale is expected to complete on 30 June 2025. This sale comes after SCA previously announced a proposal to divest these TV Assets to Australian Digital Holdings (ADH), but the final conditions to complete this transaction were not satisfied, and all further negotiations and discussions with ADH have now ceased. The completion of this sale to SWM will result in SCA being fully divested of all television assets, which aligns with its 'All About Audio' strategy. The overall proceeds to be received by SCA are $3.75 million in upfront consideration, which is equivalent to the upfront consideration of the previously proposed transaction with ADH. SCA intends to apply the upfront cash consideration from the sale of the TV Assets towards reducing net debt. The estimated consideration from the sale of SCA's television assets is, in aggregate, in the range of $19 to $24 million. On a proforma FY25 EBITDA basis, the consideration represents a multiple range of approximately 4-5 times.