Southern Cross Media Group (ASX:SXL) has launched a $471 million rights offer to partially fund its takeover bid for Austereo Group Ltd (ASX:AEO).
The media company says it has now received 90 per cent of acceptances for the takeover and is proceeding to compulsory acquire all of Austereo.
Southern Cross will now undertake a 6 for 7 accelerated renounceable entitlement offer at an offer price of $1.45 per new share.
Southern Cross will pay an extra $0.10 cash to all accepting Austereo shareholders under the offer.
Southern Cross chairman Max Moore-Wilton says the takeover is, "An important milestone towards creating a national footprint across both metropolitan and regional radio markets, as well as an integrated regional television offering".
In the first six months of the 2010 financial year Southern Cross Media Group moved out of the red, posting a net profit of $33.6 million.
