Southern Cross Media Group Limited (SCA) has found itself at the centre of a potential merger tussle, with two unsolicited proposals on the table. Australian Community Media (ACM) has put forward a non-binding indicative conditional proposal for a merger, while a consortium of ARN Media Limited (ARN) and Anchorage Capital Partners Pty Limited (ACP) has also thrown its hat into the ring.

Seven West Media also entered the media deal flurry, taking a 14.9% stake in ARN but saying it had no intention for a full takeover.

ACM's proposal involves the merger of SCA with its regional publications and digital assets. The deal would see SCA acquiring assets from ACM in exchange for the issue of new shares in SCA. This proposal, while unsolicited, is currently under consideration by SCA and its advisers.

However, ACM's proposal is not the only one SCA is mulling over. The media group is also evaluating an indicative proposal received on 18 October 2023 from the ARN-ACP consortium. The details of this proposal have not been disclosed at this stage.

SCA has appointed UBS as its financial adviser and Corrs Chambers Westgarth as its legal adviser to assist in the evaluation of these proposals. The company is assessing whether either of these proposals would be in the best interests of SCA and its shareholders.

In a statement, SCA urged shareholders to take no action in relation to either of these indicative proposals. The company stated it will continue to update shareholders as required by its continuous disclosure obligations.

The potential merger comes at a time when media companies are increasingly looking to consolidate to compete in a rapidly changing landscape. The outcome of these proposals could significantly reshape the Australian media sector, particularly in the regional areas where both SCA and ACM have a strong presence.

As the situation unfolds, industry insiders and shareholders alike will be watching closely to see which proposal, if any, SCA decides to pursue. The decision could have far-reaching implications for the future of the company and the wider media landscape in Australia.