Will be interesting to watch this unfold, will shake up the media landscape a bit if successful and take SXL off the bourse once and for all, been a death of a thousand cuts for SXL shareholders. Looks like ARN Media (ASX:A1N) are manly interested in Southern Cross Media (ASX:SXL) audio and radio assets, SXL are up 17% and A1N are down 4% on the back of the announcement. Read the announcement here https://cdn-api.markitdigital....
SXL share price since 2006
Hi my name is Anton and I have been investing in shares for over 10-years. I have completed a Masters of Applied Finance and worked in the share investment world for a period and this is where I met Elio and Chris and found my way to Stockopedia. I have a long-term fundamental investment approach which is heavily driven by ratio analysis. For me, ratio analysis cuts through the hyperverbal out there by the investment media, and the endless investment fads and flavour of the month stock. As such I mainly focus on Quality and Value; but since I have started using Stockopedia, I have started to incorporate more Momentum factors into my stock analysis. Outside of investing you will find me playing a bit of cricket and golf, or out doing a spot of fishing. more »
“been a death of a thousand cuts for SXL shareholders” - too right … I’ve held SXL since June last year … I’m still down 24% boooo hoooo :-(
I think this earnings segment breakdown from SXL's FY23 report sums up why A1N wants to consolidate their Audio assets. It's the only part of the business that is making money by the looks of it. The offer price of 94 cents a share values SXL at $225m which is more than SXL's current market cap of $207.5m, whish is equal to an 8.4% control premium, a PE of 11.8 or an EBITDA multiple of 3. So on face value, A1N are not paying above the odds for SXL and the SXL board may ask for a bit more of a premium and squeeze a bit more value out of it for shareholders, but we will have to wait and see...
