Macquarie, Fairfax Call Off Regional Radio Deal
December 10, 2007 at 5:40 AM (PT)
MACQUARIE MEDIA GROUP will not be buying nine regional Australian radio stations from FAIRFAX MEDIA LTD. after all, with the deal getting called off on MONDAY. FAIRFAX acquired the stations this year in a takeover of RURAL PRESS and was to spin the stations to MACQUARIE in an A$40 million deal that included several more divestments to satisfy the AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, but the parties, who in a separate deal jointly took over SOUTHERN CROSS BROADCASTING LTD. in OCTOBER, have called the deal off.
FAIRFAX CEO DAVID KIRK said, "We are pleased to retain these licenses. The stations are trading strongly and we are satisfied with their performance. The secondary sale of the regional radio licenses to MMG was never a key driver to the overall transaction, nor was the proposed sale price integral to the acquisition economics of Southern Star and the Southern Cross radio business. These stations are very attractive assets. Together with the metro news talk and music stations we acquired from SOUTHERN CROSS, FAIRFAX MEDIA is an even stronger force in radio."