Australia's Southern Cross Media undervalued amid takeover offer - Morningstar

ARN Media

15/01/2024 02:40

** Shares of Australia's Southern Cross Media  SXL.AX  fall
as much as 5.2% to A$0.920 after Morningstar says stock appears
undervalued amid takeover offer from broadcast co ARN Media
 A1N.AX  
    ** Brokerage says the takeover offer at A$0.97 per share,
based on ARN Media's current stock price, despite the consortium
willing to sweeten the offer by an additional A$0.127 per share
in special dividends, still "materially undervalue(s) Southern
Cross"
    ** "Group is intrinsically worth AUD 1.70 per share" -
Morningstar
    **  Morningstar says ARN Media recognizes Southern Cross is
currently underearning and has "plans to extract efficiencies to
lift the combined earnings materially"
    ** Brokerage estimates the group's maintainable EBITDA to be
A$95 million  ($63.59 million)
    ** Stock fell 6.6% last year
    

    
    

 (Reporting by Neha Soni in Bengaluru)
 ((Neha.Soni@thomsonreuters.com))