Connell brings new direction to Wilson Neill

By SIMON HENDERY

Technology and hospitality company Wilson Neill will get a new managing director and a new major shareholder in a $17 million deal that puts publishing and internet entrepreneur Tim Connell in control of the company.

Mr Connell is taking a 30 per cent stake in Wilson Neill in return for selling his business, IT Media, to the company.

The arrangement, which includes $2.5 million in cash as well as shares, cements Wilson Neill's reincarnation as a technology and internet-focused business.

Wilson Neill says it plans to retain its hospitality assets, including Parnell's Iguacu bar and restaurant and the Cobb & Co chain, and the arrangement will benefit its technology ventures, Radionet and Onthenet.

IT Media runs several youth and sport magazines and websites.

Last month, it bought e-tailer FlyingPig and yesterday Mr Connell said it was also purchasing internet-based CD retailer CDStar, from the Christchurch-based company EStarOnline.

IT Media says it is also planning to launch a weekly business magazine in March.

Wilson Neill has been in the spotlight over the past month after a director of the company, Paul Hyslop, was implicated in an insider trading investigation that related to his buying of Fletcher Paper shares.

Mr Hyslop, who has now resigned from the board, has created further concerns because of his heavy trading in Wilson Neill shares.

The company itself, which trades on the stock exchange's secondary board, has also been criticised for its lack of communication with its 8000 shareholders.

This month, technology investor Jump Capital abandoned plans to invest in Wilson Neill subsidiary Radionet.

"Despite what has happened in recent weeks with Wilson Neill, we are very proud to be involved in this deal," Mr Connell said yesterday.



As part of the acquisition of IT Media, Mr Connell and other major shareholders have agreed not to sell their shares for 18 months.

The deal is subject to shareholder approval at a special general meeting early in the New Year that will be followed by the appointment of a board of directors.

The general manager of Radionet, Leicester Chatfield, said the acquisition would give Radionet access to content from IT Media.

Radionet is establishing a nationwide high-speed wireless internet network. It also sells radio-based communications systems.

Mr Chatfield said the ownership change would also provide online marketing opportunities for Radionet on IT Media's websites and give it access to that company's web designers.

Wilson Neill shares closed 0.5c higher at 6.5c yesterday, after trading as high as 7.3c during the day. Their high for the year is 19c.