Consolidated Media Holdings Ltd
(ASX:CMJ) is to seek shareholder approval for a proposed $225 million share buyback.
According to The Australian, the company says it will seek approval from investors to buy back 73.8 million shares, close to 12% of the company.
However, reports are that biggest shareholder James Packer and, Seven Network’s Kerry Stokes will not participate in the buyback.
By not participating Mr Packer’s controlling stake will grow from 45.3% to 51.4%, and Mr Stokes’ interest will increase from 22.1% to 25.1%.
The paper reports that Consolidated Media, who holds a 25% interest in pay-TV provider Foxtel, says the buyback is consistent with its policy to return cash to shareholders in the absence of acquisitions.
Shareholders will have the opportunity to vote on the proposed buyback at a meeting on May 28.
Consolidated Media Holdings reported profit of $426.99 million for fiscal 2009.
