Wilson Neill approves IT Media purchase

By SIMON HENDERY

Wilson Neill shareholders have approved the company's purchase of Auckland-based IT Media.

At a special meeting in Dunedin yesterday shareholders voted to issue 250 million new Wilson Neill shares to IT Media founder Tim Connell, who will assume the role of Wilson Neill group managing director.

Last week the Companies Office said it was charging four Wilson Neill directors, past and present, with 59 breaches of the Companies Act over share issues used to fund its acquisitions and reward directors.

Named are chairman Trevor Mason, director Diane Giles and former directors Malcolm Johnson and Paul Hyslop, who resigned last year.

Mr Hyslop left after being implicated in an insider trading scandal involving Fletcher Challenge Paper shares.

Yesterday's meeting also approved the issuing of 19.5 million shares to Mr Hyslop, who had advanced $1.8 million to the company to fund the expansion of subsidiary wireless internet company Radionet.

After the meeting Mr Connell said Wilson Neill was "a great little company, it just needs a bit more management."

Mr Connell said his first priority as managing director would be working towards the amalgamation of IT Media and Wilson Neill.

"The big thing for us is that we want to move the head office to Auckland and get some of that corporate governance in place. What happened last week can't happen again."

Wilson Neill shares, which trade on the secondary board, closed up 0.1c yesterday at 3.6c.