Mining billionaire Gina Rinehart has financed former Seven executive Bruce McWilliam's acquisition of an almost 10% stake in Southern Cross Media, the owner of the Seven Network, Triple M and Hit radio brands, and West Australian Newspapers. The deal, valued at about A$26 million, was disclosed in documents filed with the Australian Securities Exchange on Wednesday.
Under the arrangement, Rinehart does not hold a direct stake but could take control of the shares if McWilliam breaches the terms of their agreement. Hancock Prospecting and its subsidiaries have a relevant interest in a combined 9.5% stake, giving Rinehart voting power over that portion.
This marks Rinehart's return to the media sector after previous investments in the Ten Network and Fairfax Media over a decade ago, both of which she exited. Australia's media landscape is dominated by other billionaires, including Rupert Murdoch's News Corp and Kerry Stokes, who remains the largest shareholder in Southern Cross Media with a 20% stake.
McWilliam, a former commercial director at Seven West Media and confidant of Stokes, purchased shares worth A$11.2 million and A$14 million in recent weeks, largely funded by Rinehart's loan. He cited confidence in the company and attractive share prices as reasons for the investment.
Southern Cross Media was created earlier this year through the merger of Seven West Media and Southern Cross. The company reported a 1.5% decline in total revenue to A$1.008 billion for the half-year to December.
