Wilson Asset Management chairman Geoff Wilson has rejected PwC’s independent expert report, which backs Nine’s takeover of Macquarie Media, and is pressuring the radio broadcaster’s board to get a better deal for minority shareholders.
Mr Wilson wrote to the Macquarie board’s independent directors on Sunday. He outlined reasons he believes Nine’s $1.46 per share offer for the remaining 45.6 per cent of the radio broadcaster isn’t good enough.
He said the offer is opportunistic following a bad earnings result which was hit by a NSW state election and a federal election.
He said WAM’s analysis found there are more savings and potential revenue gains than what the offer represents to shareholders. He also said Macquarie shareholders will miss out on $14.4 million in franking credits under the current deal structure.
WAM has increased its holding in Macquarie to around 4.7 per cent, or 8.1 million shares, since the offer was made.
“The Corporations Act 2001 provides far-reaching remedies for oppressed minority shareholders. Directors have the obligation to exercise their powers and manage the company in the interests of all shareholders,” Mr Wilson wrote in a letter to Macquarie’s independent board committee, chairman Russell Tate and directors Louise McCann and Monique Anderson.
Read more in the Australian Financial Review.