S$1.08 billion; euro793 million) breakup bid Tuesday for rival Southern Cross Broadcasting Ltd. Under the plan, which has the support of Southern Cross' board, Macquarie Bank Ltd.-backed Macquarie Media will take control of the group's regional television assets, while Sydney-based Fairfax will get the group's radio businesses. The deal could be among the first major transaction since a change of Australia's media ownership laws in April, which lifted the cap on foreign investment in the sector and relaxed cross-media ownership restrictions.
Macquarie Media Group is offering A$17.41 a share for Southern Cross Broadcasting. The offer comprises A$17.05 cash, plus a special dividend of 36 cents per share.
It has struck a deal to sell Southern Cross's radio business, along with select other businesses, to Fairfax for A$480 million (US$411 million; euro302 million).
"The metro radio business offers synergies to Fairfax Media," Fairfax chief executive David Kirk said.
Fairfax, primarily a newspaper publisher, will also take control of the Southern Star television production unit.
Macquarie Media managing director Alex Harvey said the deal was a good fit for his group, which owns a suite of media assets around the world, including Taiwan Broadband Communications and an Australian regional radio network.
