NZME disclosures under rules breach investigation
Media company NZME, which publishes
The New Zealand Herald, is being investigated for two potential sharemarket listing rule breaches, chairman Barbara Chapman said.
She told shareholders at the company’s annual meeting yesterday that it has two matters before the Markets Disciplinary Tribunal, the independent body that determines whether NZX listing rules have been breached.
‘‘The matters relate to disclosures made to the market in May 2020 regarding the
Stuff negotiations and in June 2020 regarding Peter Cullinane’s resignation,’’ Chapman said.
In May last year, the NZX said its regulatory branch had been in touch with NZME, after the media firm issued a statement saying it aimed to buy rival publisher Stuff for $1 by the end of May.
Stuff’s Australian owner Nine quickly issued a brief statement to the ASX in response, saying it had terminated discussions over a possible takeover by NZME of
Stuff. A Nine spokeswoman said the talks were terminated the previous week and that no talks were taking place between the companies.
In June, former NZME chairman Cullinane resigned suddenly ahead of the company’s annual meeting, saying he was aware he did not have the support of a group of Australian fund managers. NZME announced Cullinane’s departure less than 15 minutes before its annual meeting began.
Chapman told shareholders the company followed specialist external legal advice at the time the disclosures were made.
‘‘This board takes its obligations and responsibilities around continuous disclosure extremely seriously,’’ she said. ‘‘At all times we strive to ensure the market is appropriately informed and in a timely fashion.’’
The details and outcomes of the investigations will be released as soon as the regulatory processes are concluded, Chapman said. The company did not expect the issues to have a material financial impact on the business.
An NZME spokesman declined to comment further. The Markets Disciplinary Tribunal did not immediately respond to a request for comment.
Shares in NZME last traded at 80 cents, and have gained 14 per cent so far this year.