Jim Grenon, the new billionaire investor in media company NZME, has proposed an overhaul of the company’s board.
Grenon, who holds a 9.3% stake in NZME, has proposed that the company remove all current directors and appoint four new directors to the board, including himself, according to a notice to the NZX today.
A fifth director from the current board would be chosen by the nominee directors.
Grenon, an Auckland-based Canadian, claimed to have the support of some of NZME’s largest shareholders, who hold around 37% of the company’s shares.
NZME told the NZX it had received a letter from Grenon and his entity JTG 4 Limited which contained a proposal to remove the current board.
“The draft explanatory notes to Mr Grenon and JTG’s letter indicate that it is intended that the four proposed nominee directors would choose a fifth director from the existing NZME Board.”
NZME has five directors: Barbara Chapman, David Gibson, Carol Campbell, Guy Horrocks and Sussan Turner.
The NZX notice said Grenon is a substantial shareholder of NZME, having disclosed on March 1 his holding of 17,513,849 ordinary shares in NZME (9.321%) as of last Friday. He had stated at the time there was “no current intention” to make a takeover bid.
“Mr Grenon and JTG’s letter states that Mr Grenon and/or JTG currently hold 18,726,824 ordinary shares in NZME (9.97%).”
According to Stuff, Grenon lives in Auckland’s Takapuna.
Nominations for directors are open until March 11, and will be voted on at the company’s annual shareholders meeting on April 29.
Last month NZME reported a $16 million full-year net loss after taking a non-cash writedown of $24 million on its publishing assets, along with a drop in underlying profit.
