Birthday heralds changes for Radio Pacific

By Dita De Boni

There was little dissension and much nostalgia at Radio Pacific's AGM and 21st birthday celebration yesterday.

Chairman Derek Lowe formalised two years' worth of broad hints that he would be stepping back from day-to-day operations.

Before extinguishing the 21 candles on the company's birthday cake, the only remaining founding director, Ralph Witten, announced he would be retiring.

Mr Witten said Pacific's signature talkback format had had a significant impact on the country in "exposing radicalism and racism".

Mr Lowe focused on the company's continued growth into music formats under managing director of 18 months, Steven Joyce.

He said the company would be eager to nab more FM frequencies, especially in the Auckland and Wellington market.

Shareholders were also regaled with the glory of Pacific's proposed merger with Dunedin-based Radio Otago, which Mr Lowe said would eventually earn shareholders 70c per share, as opposed to the current value of 44c.

Without discussion, the shareholders unanimously voted to create what Mr Lowe called "the second largest radio company in New Zealand, and the largest owned and operated by New Zealanders".

Radio Otago shareholders, who were holding their meeting simultaneously in Dunedin, also voted to go ahead with the merger which will see Radio Pacific issue three shares for every four Otago shares.

Pacific shareholders also approved an employee shareholder plan which would see two of 300 workers - namely Mr Lowe and Mr Joyce - each receive $284,500 worth of options. One shareholder at the meeting told the Business Herald that Mr Lowe's "dynamism would be missed by the Radio Pacific family", but that the new direction the company had taken under Mr Joyce's direction was responsible for Pacific's meetings being attended by more "suits than blue-rinses, a sign the company is going somewhere".

Both Radio Otago and Radio Pacific stocks rose 15c yesterday, to 535c and 715c respectively.