KEY POINTS:
Independent directors of broadcaster CanWest MediaWorks (NZ) have unanimously recommended shareholders and optionholders accept an offer from Australian private equity investor Ironbridge Capital.
Ironbridge has agreed to buy the 70 per cent stake in MediaWorks owned by CanWest's Canadian parent and launched an offer for the rest.
The offer is to buy CanWest shares at $2.33 per share and the company's options for a range of prices between 90c and 64c. The price for shares has been adjusted from the initial $2.43 offered, to take account of the payment today of a special dividend of 10c per share.
A target company statement, including a report from independent adviser Grant Samuel was posted to CanWest shareholders today.
They have until July 9 to accept the takeover offer.
CanWest independent directors chairman David Jackson said the takeover offer followed a competitive sale process carried out by the CanWest Group.
The decision of CanWest's parent to sell its 70 per cent stake made a change in control of the company an inevitability, he said.
Another important factor in the directors' decision was that the offer of $2.33 was within the value range determined independently by Grant Samuel, Mr Jackson said.
CanWest owns and operates the TV3 and C4 television networks, national radio brands The Edge, The Rock, More FM, Kiwi FM, RadioLIVE, Radio Pacific/Radio Trackside, Solid Gold and The Breeze, plus several local radio stations.
Its shares were unchanged today at $2.30.
- NZPA
