Australia's richest person, Gina Rinehart, has financed former Seven media executive Bruce McWilliam's acquisition of nearly 10% of Southern Cross Media, the owner of the Seven Network, Triple M, Hit radio, and West Australian Newspapers. The deal, valued at approximately A$26 million, does not give Rinehart a direct stake but allows her to take control of the shares if McWilliam breaches their agreement.
The arrangement, disclosed in an ASX filing on Wednesday, marks Rinehart's return to the media sector after she previously held stakes in Ten Network and Fairfax Media over a decade ago. Fairfax later merged with Nine in 2018 to form Australia's largest integrated media company.
Southern Cross Media was created earlier this year when Seven West Media, controlled by West Australian billionaire Kerry Stokes, merged with Southern Cross. Stokes remains the largest shareholder with a 20% stake, while the McWilliam-Rinehart investment now represents the second-largest holding.
According to ASX documents, Hancock Prospecting and its subsidiaries have a relevant interest in a combined 9.5% stake. Rinehart is considered a substantial shareholder due to her finance company's power to control share disposal and voting rights. McWilliam purchased A$11.2 million and A$14 million worth of shares in recent weeks, largely funded by Rinehart's loan.
McWilliam stated he believes in the company and acquired shares at a favourable price post-merger. Southern Cross reported a 1.5% decline in total revenue to A$1.008 billion for the half year to December. Rinehart, an influential political voice, has previously backed right-wing movements and donated nearly A$900,000 to the Advance campaign group last financial year.
