Macquarie Media’s major shareholders John Singleton and Mark Carnegie are set to back Nine’s offer to buy the remaining shares of the radio network.
As reported in the Sydney Morning Herald, if an independent report from PwC recommended the bid, Nine, who currently owns 54.5 per cent of the network, would take full control of Macquarie Media.
On August 12, Nine announced to the ASX an offer to acquire the remaining shares of the radio broadcaster.
The offer values Macquarie Media at $275.4 million and will see Nine pay $113.9 million (at $1.46 per share) for the remaining 45.5 per cent stake in the leading talk radio business, which owns stations 2GB, 3AW, 4BC, 6PR and Macquarie Sports Radio, provided enough shareholders accept the offer to lift Nine to 90 per cent (and it can then acquire the remainder).
Nine inherited the majority shareholding in Macquarie Media following its merger with Fairfax Media in December 2018.
According to the SMH, sources close to Singleton (who owns 32.5 per cent) and Carnegie (who has a 3.6 per cent stake), have confirmed they are expecting to agree with the offer if PwC recommends the bid.
Smaller shareholders have suggested the price is too low, however, with Wilson Asset Management founder Geogg Wilson and former colleague Centennial Asset Management Mathew Kidman both publicly criticising the bid.
The PwC report is due in early-September.