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SYDNEY - Australian newspaper publisher Fairfax is moving into the radio business, in a deal that will see them own two of the country's leading radio stations, 2UE and 3AW.
They'll achieve the purchase through an acquisition today by their business partner Macquarie.
Macquarie Media Group is set to buy regional broadcaster Southern Cross Broadcasting (Australia Ltd) in a deal valuing the company at A$1.35 billion ($1.49 billion).
Southern Cross today said it would recommend the proposed A$17.41 cash per share offer from Macquarie Media, to be carried out under a scheme of arrangement.
"The proposed scheme, which implies an enterprise value for SCB of A$1.35 billion, is subject to approval by SCB shareholders (other than MMG) at a scheme meeting expected to be held in October 2007," Southern Cross said in a statement.
Macquarie Media already holds a 13.8 per cent interest in Southern Cross, which it acquired last November.
In a proposed carve-up of the company, Macquarie Media has separately agreed to sell certain Southern Cross assets to newspaper publisher Fairfax Media Ltd after the deal is implemented.
They include the metropolitan radio businesses -- Sydney radio station 2UE and Melbourne's 3AW -- film and television production business Southern Star and Satellite Music Australia.
Macquarie Media will hang on to Southern Cross' regional television operations and associated businesses.
- AAP
