Australia’s richest person, Gina Rinehart, has emerged as a major shareholder force behind Southern Cross Media after lending tens of millions of dollars to former Seven West Media executive Bruce McWilliam to finance his growing stake in the company.
In her first serious move into the media sector in almost a decade, companies linked to Rinehart revealed to the market on Wednesday that she had entered into an agreement with McWilliam in mid-April to support his investment in the media giant.
A copy of the agreement lodged with the ASX shows Hanrine Finance, a company owned by Rinehart’s mining group Hancock Prospecting, has the right to take ownership of almost 44 million shares — equivalent to 9.15 per cent of the company — if McWilliam fails to meet the terms of the deal.
While the arrangement does not amount to a direct equity stake held by Rinehart, it marks her first significant involvement in a major Australian media company since her investment in Network Ten nearly a decade ago.
Rinehart acquired a 10% holding in the broadcaster in 2010 and later secured a seat on the board before the network entered voluntary administration in 2017.
The mining billionaire also built a substantial stake in Fairfax Media in 2012, but exited the investment three years later following disputes with the board over the editorial independence of its newspapers, The Sydney Morning Herald and The Age.
Southern Cross Media became one of Australia’s largest media groups earlier this year after acquiring Seven West Media. The merged business now controls the Seven Network, Triple M and Hit radio brands, as well as West Australian Newspapers.
Media billionaire Kerry Stokes remains the company’s largest shareholder with a 20 per cent stake and continues to wield considerable influence within the business, despite reducing the size of his overall holding following the merger.
McWilliam, a former commercial director at Seven West Media and long-time Stokes lieutenant, has steadily increased his investment in Southern Cross Media in recent months.
In mid-April, he purchased almost $14 million worth of shares to build a 5.3% stake, before acquiring a further 20 million shares valued at $11.2 million earlier this month.
He now holds 9.73 per cent of the company, with the majority of the acquisition funded through Rinehart-backed financing.
McWilliam has stressed his purchases have been about value.
“I believe in the company and the shares came up at a good price given what they were at the merger – a top national TV network and strong national radio network,” he said last month.
But that has not stopped speculation he wants a seat on the Southern Cross board, which some other shareholders – including Melbourne businessman Alex Waislitz – have publicly backed.
The company is currently searching for two independent directors after former chairman Heith Mackay-Cruise announced he would step down.
