Seven West Media (SWM AU) Enters Scheme With Southern Cross (SXL AU). But Not Everyone Is Happy

• Television broadcaster and publisher Seven West Media (SWM AU) has entered into a Scheme with radio network play Southern Cross Media (SXL AU).

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

• Kerry Stokes backed SGH Limited (SGH AU) will hold ~20% in the merged entity. But not all shareholders are on board with the Offer. Trading through terms.

The Trade:

• Two illiquid companies merging, possibly with shareholder pushback - not something I’d be actively chasing.

• Terms have not been declared final (as far as I see)

This insight is labelled bullish as I’m not bearish SWM or SXL here.