Southern Cross Media Group Limited (SCA) has declined a non-binding conditional indicative proposal for a merger from Australian Community Media (ACM), stating it is not in the best interest of SCA and its shareholders.

The proposal involved SCA acquiring regional print and digital assets from ACM, a move that SCA deemed inconsistent with its strategic focus. In an ASX statement, SCA said its strategy is centred on becoming Australia's leading audio company, with 'All About Audio' being a key driver of its growth. .

"The ACM Proposal involves the acquisition by SCA of regional print and digital assets, which is not consistent with SCA's strategy," the company stated.

In the meantime, SCA and its advisers continue to evaluate another indicative proposal received on 18 October 2023 from a consortium of ARN Media Limited (ASX: A1N) and Anchorage Capital Partners Pty Limited. SCA has recommended shareholders take no action in relation to either of these indicative proposals at this stage. The company appears to be taking a cautious approach, ensuring that any potential merger aligns with its strategic direction and benefits its shareholders.

The news comes just days after Seven West Media snapped up a 14.9% stake in ARN. The media giant has stated it has no intention for a full takeover.

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