CanWest entices radio linchpins

RadioWorks' key shareholders are ready to do business, reports SIMON HENDERY.

CanWest's takeover of RadioWorks looks certain to succeed after two key RadioWorks shareholders said yesterday that they would sell to the Canadian media giant.

CanWest Global Communications, which owns TV3, TV4 and the the More FM network, last week announced a $9.35-a-share raid on the 28 per cent of RadioWorks it does not already own.

RadioWorks' second-largest shareholder, Energy Investments Taranaki, said yesterday that it intended giving up its 10.6 per cent stake.

Energy Investments chairman Norton Moller said CanWest's bid had thwarted the aspirations of many RadioWorks shareholders who had wanted to be part of a strong and influential NZ-owned radio company.

But the takeover would "create an even stronger operation that will ultimately benefit the staff as well as New Zealand radio listeners," Mr Moller said.

The sale will be worth $12.2 million to Energy Investments, whose shareholders include RadioWorks managing director Steven Joyce.

The next largest shareholder, Dunedin lawyer Walter Rutherford, also said he would sell his 2.5 per cent holding.

Smaller shareholders are likely to follow suit, meaning CanWest should have no difficulty acquiring the 90 per cent stake it needs to trigger a compulsory full takeover, if it needs to do so to sweep up the balance.

Brent Impey, head of CanWest's operations in New Zealand and chairman of RadioWorks, said the decision by Mr Rutherford and Energy Investments was welcome news.

A committee of independent RadioWorks directors has been set up to report to shareholders on the merger by January 9.

RadioWorks is the country's second-largest radio company and runs Radio Pacific, The Edge, The Rock, and Solid Gold networks, plus 22 other local stations.