A new NZX notice reveals latest numbers and support for billionaire, while the journalists’ union says it’s ‘deeply concerned’ about the risk to an important media network.
A billionaire looking to clean out the board of NZME – owner of the NZ Herald and Newstalk ZB – says he nowhas almost 50% support of the media company’s shareholders.
Auckland-based Canadian Jim Grenon had indicated on Thursday he had support from about 37% of the company’s shareholders for his plans to bring on four new board directors. That has increased to about 47%, according to a new advisory on the NZX from publicly listed NZME on Friday afternoon.
The 47% support includes his own almost 10% shareholding.
NZME, quoting directly from a letter from Grenon’s lawyers, told the NZX: “Since NZME released its announcement yesterday afternoon ... Mr Grenon advises that additional shareholders with ~10% have also indicated their support. We can advise an updated percentage closer to the time of publication of the materials [for the company’s annual shareholders meeting].”
Auckland-based Canadian billionaire Jim Grenon.
NZME said it would send a further update on the matter when it issued the official notice for the annual meeting on April 29.
As Media Insider reported earlier today, that meeting represents high noon for the company and its future shape and direction, with chair Barbara Chapman and board directors Carol Campbell, David Gibson, Guy Horrocks and Sussan Turner also likely to be fighting for their futures.
Grenon’s plan is for the four new proposed directors – if elected – to select an existing board member for the fifth position.
Grenon’s move has sparked strong reaction across the political spectrum.
The journalists’ union, E tū, said in a statement on Friday afternoon that it was “deeply concerned” about the positioning.
It described Grenon as a “controversial” figure in the media landscape, with his background of establishing alternative news platforms NZ News Essentials and the Centrist website.
E tū director Michael Wood. Photo / Alyse Wright
E tū director Michael Wood said Grenon had a clear agenda to use NZME “for his own interests”.
”Mr Grenon clearly wants to use his financial clout to steer the editorial direction of one of New Zealand’s largest and most important media networks,” Wood said.
”While changes to media ownership in New Zealand are common, there is not any recent example of an extremely wealthy individual seeking to use an ownership stake to steer public discourse in the way that Mr Grenon, based on his track record, seems to be attempting.”
He said the idea a group backed by extreme wealth was “planning to take over such an important institution in our democratic fabric should be of concern to all New Zealanders”.
Wood called on the current NZME board to reaffirm its commitment to the editorial independence of NZME’s publications.
“While there is clearly a commercial process to play out, we must protect the rights of NZME journalists to report free from undue interference. We urge other shareholders to think carefully about the impact on the value and standing of NZME if they allow it to be turned into a plaything for the agendas of billionaires like Mr Grenon.”
NZME union delegate Isaac Davison said the takeover proposal created significant uncertainty about the company’s potential direction and the newsroom’s editorial independence.
”Our top priority is preserving the impartiality of our journalism and the independence of the newsroom,” Davison said.
Grenon’s moves are certainly exercising the minds of journalists, academics, researchers and right- and left-wing protagonists.
She was “absolutely beyond excited” to see changes coming for the NZ Herald.
Editor-at-large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including managing editor, NZ Herald editor and Herald on Sunday editor and has a small shareholding in NZME.
