Mining billionaire Gina Rinehart has entered the Southern Cross Media arena, backing former Seven network executive Bruce McWilliam with a loan to take a significant share in the television, radio and publishing company.
According to papers lodged with the ASX, Rinehart, Hancock Prospecting and a long list of subsidiaries now have an “interest” in a combined 9.5% stake in the media group.
This is through a loan agreement with McWilliam, the former commercial director at what was then the Seven network, via Rinehart’s Hanrine Finance Pty Ltd.
Rinehart is considered a substantial shareholder because her finance company has the power “to control the disposal of the shares” as set out in an agreement with McWilliam on April 16.
McWilliam, once the right hand man to another Western Australian billionaire, Kerry Stokes, has 9.74% of the television and radio group.
That makes him the second largest shareholder after his old boss, Stokes, who has a 20% interest in Southern Cross Media Group via his ASX-listed company SGH.
Another shareholder, Billionaire investor Alex Waislitz, controlling 7.5% of Southern Cross, has gone public in support of McWilliam taking a seat on the board of directors.
The merger of Seven West and SCA was designed to create a company with a market capitalisation of more than $400 million. It’s currently valued by the market at $270.5 million.
McWilliam, assuming he has the backing of Stokes, could have the backing of at least more than one third of the voting shares in the company.
The company has seen considerable change since Seven West and Southern Cross became one company.
Rohan Lund, a former Seven network executive, was last month appointed CEO of Southern Cross. He was also a director on the board.
He replaced Jeff Howard who stepped down in February on the eve of the release of the group's December half results.
Southern Cross, in its first combined post-merger results, for both television and audio, reported total revenue down 1.5% to $1.008 billion in the half year to December.
Television revenue dropped 2.1% to $712 million, while audio was up 3.2% to $216.5 million.
No dividends were declared, with the company focused on debt reduction.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.