Macquarie Media’s major independent shareholders, John Singleton and Mark Carnegie are reportedly ready to accept the bid from Nine Entertainment to acquire the remaining shares in the radio network.
According to the SMH, the pair are just waiting for an independent report from PwC to see if the offer is recommended.
Because the purchase is dependent on Nine acquiring over 90% of all shares, the deal most likely requires the support of both Mr Singleton, who owns 32.4 per cent of the business, and Mr Carnegie who has a 3.6 per cent stake.
PwC’s independent analysis is a standard part of the process of taking the offer to shareholders and is due early in September, and while 2GB’s Alan Jones, who owns 1.3 per cent of the business, has already said he was inclined to support the deal, there are some small shareholders who have been vocal in their opposition to the deal.
Wilson Asset Management founder Geoff Wilson and former colleague Centennial Asset Management’s Mathew Kidman have both publicly criticised the price as too low, suggesting that a mid-range offer of $1.76 per share would be closer to the mark.
The difficulty for the smaller shareholders is that once Nine has a 90 per cent stake, the deal cannot be blocked and the Singleton and Carnegie holdings, along with Nine’s 54.5 percent would give them the stock they need.