Nine raises stake in Mac
Broadcaster locks in 90 per cent needed to secure takeover
NINE Entertainment has finally secured a 90 per cent stake in Macquarie Media, a threshold that will allow it to compulsorily buy out the remaining shares in the radio network.
The broadcaster yesterday said it lifted its stake in Macquarie to 92.8 per cent at the end of last week, when reports suggested it had convinced venture capitalist Mark Carnegie and radio host Alan Jones to sell their shares.
Nine’s shareholding in Macquarie had been just short of the 90 per cent mark that would allow it to complete the $114 million takeover of the talk radio business, which owns stations 3AW, 2GB, 4BC, 6PR and Macquarie Sports Radio.
Nine chief Hugh Marks said it would be business as usual for Macquarie staff, with the final stages of the deal to be wrapped up towards the end of the year.
“We will work to ensure (Macquarie staff) have the support, infrastructure and clarity to be able to do what they do best,” Mr Marks said.
Shares in Nine Entertainment fell 0.3 per cent to $1.895 in the first 15 minutes of trade yesterday. They ended the day 0.8 per cent down at $1.885.
Nine, which took a majority 54.5 per cent stake in Macquarie as part of its $4 billion takeover of Fairfax Media last December, made a $1.46-ashare bid in August to secure the rest of the company.
The offer valued Macquarie at $275.4 million.
Advertising mogul John Singleton sold his 32.4 per cent stake in September after initially hesitating over the price.
The Nine-owned Sydney Morning Herald reported the deal was sealed on Friday when Mr Jones and Mr Carnegie agreed to offload their combined 4.9 per cent holding. Mr Jones is a presenter on 2GB.
Macquarie announced a review into his breakfast radio show last month after up to 100 advertisers pulled their support.
That followed Mr Jones’ suggestion that Prime Minister Scott Morrison “shove a sock” down New Zealand Prime Minister Jacinda Ardern’s throat to stop her speaking out on climate change.