Nine Entertainment has taken a 9.99 per cent stake in regional broadcaster Southern Cross Media, in the first of expected moves in the sector as players position themselves ahead of a likely change in Australian media ownership rules.
Nine acquired the shares from Macquarie Group for A$1.15 each, a 3Ac discount to the target's closing price on Thursday, paying A$88.3 million for the entire stake.
The move comes just weeks after the federal Government introduced new media ownership laws to Parliament in an effort to remove regulations prohibiting significant media mergers.
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The Turnbull Government's proposed changes include scrapping the two-out-of-three rule that prevents a media owner controlling more than two of three radio, television and newspaper outlets in an area, and another rule that prohibits a proprietor from controlling a TV licence that reaches more than 75 per cent of the population.