The Weekend Herald reports the power play prompted by a billionaire investor. Photo: Weekend Herald / NZME
An attempt by Canadian-born billionaire Jim Grenon to take control of NZME's board is "under consideration" by the government's takeovers regulator.
Private equity tycoon Grenon, a New Zealand resident since 2012, bought a 9.3 percent stake in NZME for just over $9 million.
NZME is publisher of a number of newspapers, including the New Zealand Herald, as well as operating radio stations and property platform OneRoof.
Within days of taking the stake, Grenon had written to the company's board proposing that most of its current directors be replaced with new ones, including himself.
But on Tuesday, the Takeovers Panel, which ensures shareholders have opportunity to participate in transactions such as takeovers, said the matter was under consideration. Chief executive Andrew Hudson said the panel could make no further comment.
Photo: Supplied
It was reported by The Australian newspaper there were concerns that shareholders driving the change were working in concert, which contravenes listing rules.
NZME board chair Barbara Chapman told NZME that the company was open to new board members, but rejected criticism of its performance.
Major shareholder Spheria Asset Management said it was disappointed by the financial performance of the company over the past two years.
"Operating NPAT [net profit after tax] has declined from over $23 million in CY22 to just $12 million in CY24 - a near 50 percent drop. If this trend continues, the company faces a genuine risk of becoming unviable in the near future, which would have serious consequences for both shareholders and employees. This trajectory is simply unsustainable," it told NZ Herald's Media Insider column.
Spheria has 19 percent of NZME's shares and backs Grenon's bid.
Grenon has been contacted for comment.
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