NZME publishes the New Zealand Herald. Photo: RNZ Mediawatch
- Canadian billionaire makes bid to dump media company NZME board
- Jim Grenon emerged as near 10 pct shareholder this week
- Says he has support of big shareholders for his move
- Earlier said no intention at this stage to make takeover offer
An Auckland-based Canadian billionaire is leading a move to dump the board of media company NZME.
Jim Grenon emerged as a near 10 percent holder in the company earlier this week.
He has told the company's board he wants to remove most of the current directors, replace them with himself and three others and choose one existing director to stay on.
Grenon holds his shares directly and also through private company JTG4.
NZME publishes a stable of newspapers, including the New Zealand Herald, as well as the Newstalk ZB radio network.
James Grenon. Photo: TOM Capital Management
"Mr Grenon and JTG's letter states that they have discussed in confidence these proposals with some of NZME's largest shareholders, who hold approximately 37 percent of NZME's shares," NZME's board said in a statement to the stock exchange.
"Mr Grenon and JTG's letter states that those shareholders have indicated to them their support for these proposals. Mr Grenon and JTG further state that they do not have control of the voting rights of those other shareholders, and that those other shareholders reserve the right to change their indicated intention to support Mr Grenon and JTG's proposals."
The other supporting shareholders were not identified.
"NZME is not in a position to confirm Mr Grenon or JTG's statements in the letter regarding such indications from other NZME shareholders," the board said.
The deadline for director nominations is 11 March, and the annual meeting to vote on board membership is on 29 April.
Grenon media interests
Grenon owns Calgary-based private equity firm TOM Group, and has interests in alternative local media outlet The Centrist and NZ Essential News (NZNE), which have run critical articles on vaccines, climate change, and identity politics.
The Centrist claimed to present under-served perspectives and reason-based analysis, "even if it might be too hot for the mainstream media to handle".
Meanwhile, a San Francisco investment company, Osmium Partners, which has a 6.5 percent stake in NZME, has put forward nominations for two seats seats on NZME's board.
It has been a shareholder since the middle of last year, but given no details of its intentions nor whether it has any links to Grenon.
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