Seven West Media (SWM AU): 22nd Dec Vote On Southern Cross (SXL AU)'s Offer

• Back on the 30th September, television broadcaster and publisher Seven West Media (SWM AU) entered into a Scheme with radio network play Southern Cross Media (SXL AU).

• SXL will issue 0.1552 new shares for every SWM share. Should the Scheme get up, SXL will hold 50.1% of the combined entity and SWM the remainder.

• The Scheme Booklet is now out, with a Scheme Meeting on the 22nd December, and expected implementation on the 7th January. The IE (Lonergan) says “fair & reasonable“. Clean deal.

Both Seven West Media (SWM AU) and Southern Cross Media (SXL AU) are illiquid. Look away if not your bag.

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The Trade:

• Two illiquid companies merging via scrip terms - not something I’d be actively get involved in.

• SWM is trading through terms.

• IF this is your thing, I might consider buying SWM outright.