The Seven Network’s
(ASX:SEV) second largest independent shareholder, Perennial Investment Partners, is expected to announce today whether it will support Seven’s proposed $2 billion takeover of WesTrac.
Perennial owns 5.5% of Seven, and if it doesn’t support the deal, it is unlikely that it will be approved at a shareholder vote on April 20, or at least not in its current form.
Seven which is 48.7% owned by executive chairman Kerry Stokes plans to pay $1 billion in shares for the equipment distribution company, which is also 100% owned by Mr Stokes’s private firm Australian Capital Equity.
Some shareholders are expected to be influenced by reports out this week from corporate governance advisers which recommend voting against the merger.
Perennial boss John Murray has remained reasonably quiet on Seven’s proposed merger with WesTrac however the Australian Financial Review reported last week that he does have reservations.
Seven’s largest independent shareholder Ausbil Dexia, which owns 6.8% of the media company, is still in discussions about the deal and is likely to reveal what it thinks of the deal next week.
The Seven Network posted a $12 million net profit in 2009, considerably less than the $141 million the year before.
