By PAUL PANCKHURST
Sharebroking firms seeking shares in the CanWest MediaWorks float have been scaled back by up to 60 per cent amid heavy demand.
Lead manager Goldman Sachs JBWere yesterday allocated about 40 million shares to broking firms.
The Business Herald was told that firms typically got 50 per cent to 60
per cent of what they wanted.
The offer of up to 81.6 million shares opens tomorrow.
CanWest MediaWorks is made up of six national radio brands, 22 regional radio stations and television networks TV3 and C4.
The Canadian owner, CanWest Global Communications, is selling 30 per cent to 36 per cent of the company to repay debt at home.
It will raise up to $134.6 million.
The prospectus for the offer was registered on Friday.
Many of the details - including forecast earnings - are already public after the pre-marketing of the offer to sharebrokers and institutional investors.
New details include a one-year restriction on CanWest Global further selling down its stake. A range of exceptions to that restriction include: if CanWest MediaWorks is the subject of a takeover offer.
The float company's chairman is Tom Strike, the chief operating officer of CanWest Global.
His letter to investors says CanWest Global "currently intends to be a long-term investor".
The rest of the board is: CanWest MediaWorks chief executive Brent Impey; independent directors David Jackson, Susan Sheldon and Craig Thompson; and CanWest Global's president, Leonard Asper, and chief financial officer, John Maguire.
MediaWorks forecasts operating earnings for the year to August 2005 of $61.1 million on revenue of $235 million. This year's forecast is operating earnings of $60 million and revenue of $227 million.
The indicative price range for the offer is $1.50 to $1.65 a share.
The final share price will be announced on July 12 after a "book build" where institutional investors bid for stock. The company is to list on July 29.
A minimum of 68 million shares will be sold in the offer, with 13.6 million more available on over-allotment.
