Southern Cross Austereo (SCA) has come out swinging against an attempted boardroom coup, rebuffing a push by activist investor Sandon Capital to oust four of its directors.
In a statement on the ASX this morning, SCA said it had the backing of shareholders representing more than 50% of its voting capital and called Sandon’s actions a “considerable distraction” and an “unnecessary cost.”
The board urged Sandon to drop its proposal to remove Chairman Heith Mackay-Cruise, Ido Leffler, Carole Campbell, and Marina Go, saying the resolutions had little chance of success given strong support from major investors including Thorney Investment Group, Spheria Asset Management, and Ubique Asset Management.
SCA Chairman Heith Mackay-Cruise
Sandon’s surprise offensive
According to The Australian Financial Review’s Street Talk column, the move followed a strongly worded letter from Sandon Capital to SCA’s board and top investors.
The letter criticised the company’s recent decision to resume paying dividends and its newly launched executive incentive scheme, characterising both as a “thinly veiled bid for short-term shareholder support.”
Sandon first appeared on SCA’s share register in late April with a 5.05% stake, acquired at around $0.51 per share. By the end of trading last Friday, that investment had grown almost 40%, with the share price closing at $0.71.
Board points to momentum and results
SCA says it’s not just support from its heavyweight shareholders that bolsters its position, but also the company’s current performance.
Recent financial updates reveal:
• Audio revenue up ~9% over the first four months of 2025, exceeding guidance.
• FY25 operating costs forecast at $265 million, $5 million better than expected.
• Plans to resume dividends for the first time in years.
• Completion of a deal to sell its remaining TV assets in Tasmania, Darwin, Broken Hill and more to Seven West Media.
Former SCA chair Rob Murray
Déjà Vu for SCA
This isn’t the first time SCA has found itself in the crosshairs. The broadcaster has seen multiple destabilisation attempts in recent years, including failed takeover approaches by Anchorage Capital Partners and ARN Media.
In March 2024, Spheria Asset Management, one of the current backers of SCA’s board, played a key role in ousting then-chairman Rob Murray, prompting his early retirement.