Heith Mackay-Cruise Resigns as Southern Cross Media Chair Following Shareholder Pressure
"The combined entity's market value was reported to be approximately $280 million, down from an estimated $430 million for the two independent companies before the merger."
Leadership Change Effective July 1
Heith Mackay-Cruise announced his resignation as executive chairman of Southern Cross Media on Monday, stepping down after a formal request from a shareholder for his removal. Teresa Dyson, a former board member of Seven West Media, will succeed him as chair, with the transition taking effect on July 1.
Board Restructuring Underway
The company's board has confirmed it will immediately begin a search for two new directors. The shake-up follows a directive from Southern Cross shareholder Sandon Capital, which had called for the removal of Mackay-Cruise and two other board members, citing significant financial underperformance since the company's merger with Seven West Media in January.
Merger Value Declines Sharply
Since the merger, the combined entity's market value has dropped to approximately $280 million, a steep decline from the estimated $430 million valuation of the two independent companies prior to the deal. This performance shortfall was the primary catalyst for the shareholder intervention.
Transition and Major Stakeholder
Dyson will oversee the transition period, tasked with finalizing the merger's integration. Notably, Kerry Stokes holds a 20% stake in Southern Cross, and his son Ryan Stokes remains on the board, ensuring continued influence from the Stokes family during this period of change.