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Media company Southern Cross Media Group (ASX:SXL) has made an off-market takeover bid for Austereo Group Ltd (ASX:AEO), that the directors of Austereo have unanimously recommended shareholders accept.

Under the terms, Austereo shareholders have the option of receiving either cash and dividends or scrip and dividends.

Shareholders can choose between receiving $2.05 cash per share and a dividend of $0.05 cents per share, or an entitlement of 0.95 Southern Cross Media Group shares for every Austereo share they hold together with a dividend of $0.05 cents per share.

It is expected the merged business will deliver revenues in excess of $670 million, EBITDA in excess of $215 million and strong cash flow generation.

Southern Cross Media chairman Max Moore-Wilton says the deal is consistent with the company's strategy to build a strong Australian media company.

In the year to 30 June 2010, Southern Cross Media Group reported a net loss of $82.7 million.