Iron ore magnate Gina Rinehart has bankrolled the purchase of a 9.15% stake in Southern Cross Media Ltd (ASX: SXL) by former Seven Network commercial director Bruce McWilliam.
Image source: Getty Images
Loan agreement struck
Documents lodged with the ASX on Wednesday list Mr McWilliam as the owner of the shares, with Ms Rinehart's company Hanrine Finance having a "security deed" – a loan agreement – over the shares.
Ms Rinehart has previously owned interests in Network Ten and Fairfax Media, and also has interests in listed mining companies such as Arafura Rare Earths Ltd (ASX: ARU).
Southern Cross Media merged with Seven West Media earlier this year in a deal worth $400 million, with the combined companies expected to realise $25 to $30 million in annual cost savings.
Seven West's key brands at the time included the suite of Seven television channels, the newspaper The West Australian, and the free online publication The Nightly.
Southern Cross's key brands were the Triple M radio network, the Hit network, and the audio streaming service, Listnr.
It is unclear at this stage what Mr McWilliam's intentions regarding his stake are, although there is reported speculation that he could launch a full takeover bid or seek a board position at some point.
Media companies have struggled in recent years, with the value of both Southern Cross and Seven West falling from figures in the billions to just a couple of hundred million each before the merger went through.
New broom to usher in growth
Southern Cross recently announced the appointment of a new Managing Director, Rohan Lund, who joined the company from his previous role as head of the NRMA from 2016 to 2025, where he "led the organisation's transformation into a diversified transport, tourism and services group, with a strong focus on digital capability, brand trust, sustainability and member experience''.
Mr Lund has also held roles as Chief Operating Officer of Foxtel, Group Chief Operating Officer of Seven West Media, founding Chief Executive Officer of Yahoo!7, and Chief Strategy Officer at Singtel Optus.
Chairman Heith Mackay- Cruise said of the appointment:
Rohan brings deep media experience, digital and technology‑enabled transformation capability, and values‑driven leadership skills. He has led complex organisations through significant change, while maintaining a strong focus on culture, trust and long‑term value creation. The Board is looking forward to working with Rohan to achieve our strategic objectives.
Southern Cross shares were 2.6% higher in early trade at 59.5 cents. The company is valued at $277.7 million.
