Bruce McWilliam's acquisition of a near-10% stake in Southern Cross Media has been largely financed by a company associated with Gina Rinehart and Hancock Prospecting.
Ownership and Financing Structure
ASX filings show that McWilliam's stake of approximately 9.73% in Southern Cross Media is mostly financed by a company linked to Gina Rinehart and Hancock Prospecting. The arrangement, signed in April, gives Rinehart a relevant interest in the shares and security over them. If the agreement dissolves, Rinehart can take control of the shares.
Hancock Prospecting and its subsidiaries hold a "relevant interest" in a combined 9.5% stake. Rinehart is considered a substantial shareholder due to voting power. The filing was made with the ASX on Wednesday.
McWilliam purchased shares worth $11.2 million and $14 million in recent weeks, largely financed by a loan from Rinehart. The value of the stake is approximately $26 million.
Background
Rinehart previously held a 10% stake in the Ten Network and a 15% stake in Fairfax Media (now Nine), but exited both over a decade ago. She retains close ties with News Corp and Sky News Australia.
Kerry Stokes' family retains a 20% share in Southern Cross Media following the merger of Seven West Media and Southern Cross earlier this year. Industry speculation about a potential takeover of Southern Cross Media (valued at $278 million) has been noted, though reports indicate Stokes and McWilliam are not working together.
Statement
"I believe in the company and the shares came up at a good price given what they were at before the merger. They were almost half down and it's a top TV network and strong radio network, both with national platforms."
— Bruce McWilliam
Financial Context
Since the merger, Southern Cross reported total revenue down 1.5% to $1.008 billion in the half year to December.