Southern Cross in talks with new Chair

Southern Cross Media Group will reportedly announce the appointment of turnaround specialistPeter Bush as its new Chairman on February 25, at its half-year results.

According to Sydney Morning Herald, Southern Crossare in advanced discussions about the appointment however an agreement hasn’t been finalised.

Bush will allegedly replace the departing Max Moore-Wilton as a non-executive, independent Chair.Rhys Holleran will remain as Chief Executive.The hunt for a new Chairman started last year when Moore-Wiltonannounced he was planning to exit in 2015.Deputy Chairman Leon Pasternak was charged with the task of securing candidates.

Bush is currently Chairman of the ASX-listed Pacific Brands –a clothing manufacturer that sold several of its shoe brands last November for $39 million –and hotels business Mantra Group.

Interestingly, from 2011 to 2013 Bush was Chairman of Nine Entertainment Holdings; last year Southern Cross and Nine made headlines over a suspected merger.

The appointment follows Southern Cross’ decreasing share figures and loss of ratings for its radio brands. Southern Cross shares are down 49.6% since October 2013 to 94.5¢ and last August reported a net loss after tax of $296m in the full year to June 30. 2DayFM in Sydney suffered a ratings collapse since thedeparture of breakfast hosts Kyle Sandilands and Jackie ‘O’ Henderson. The media group ended the station’s year on a positive note however, announcing a youth-oriented focus with the return of popular duo Hamish Blake and Andy Lee in the 2DayFM Drive slot from July and Dan Debuf and Maz Compton into the breakfast slot.

TMN spoke to a Southern Cross representative this morning who said there is no certainty surrounding the reports as yet.