Photo: Supplied
The Auckland businessman looking to oust the board of media company NZME believes he has the numbers to achieve change, and told the current board resistance was "futile".
In a letter released through the company to the NZX, Jim Grenon gave more detail on how the board might be restructured, although he remained adamant that he and his three nominees - Des Gittings, Philip Crump and Simon West - should be voted in to replace the current board.
But he offered some compromise with "other shareholder factions... to end up with more consensus", by suggesting four other directors could be appointed.
These might include members of the current board or advisory boards of one of NZME's businesses - the senior management, most likely chief executive Michael Boggs, and a nominee from the shareholder Osmium Partners, which made two nominations.
Grenon said Boggs was not an original pick for a board member, and he had not meant to single him over NZME's performance.
"Yes, he is part of what I consider to be some shortcomings, but I am prepared to give him the benefit of the doubt that he was not the only person involved and try for a fresh start for all."
He said Boggs' appointment would be a vote of confidence that would be "helpful for both Michael and his staff at NZME".
Grenon - who has a near 10 percent stake in NZME - said he also expected directors to have reasonable stakes in the company, unlike the current board which had minimal holdings.
NZME has a range of newspapers including the New Zealand Herald, NewsTalk ZB and other commercial radio stations, and online property platform One Roof.
Resistance is futile
Grenon said support had been gathering for his assault on the board and the numbers were in his favour.
Initially he said he had support from shareholders with 37 percent of NZME, including his own stake, which increased to just below 50 percent, with another 10 percent coming in behind him.
"It should be noted that discussions with these shareholders are ongoing, and some of them have back-pedalled somewhat, so I do not know where this will end up," Grenon said.
He said he had looked through last year's voting numbers and identified a large number of shareholders backing his move.
"Reflecting on these figures, I believe my proposal will earn the support of an overwhelming majority of votes at the upcoming annual meeting.
"Hopefully, the existing board quickly decides it is futile to continue and ends both the distraction to the company's affairs and the needless expense."
Grenon said his new flexibility on board makeup was to bring the issue to an end quickly, which would be better for the company and staff.
The NZME board said in a covering letter that it "remains focused on protecting shareholder value and ensuring shareholders have all accurate and relevant information in order to consider the resolutions to be voted on by shareholders at the annual shareholders' meeting."
The annual meeting is on 29 April.
Grenon also devoted a good deal of his letter to answering criticisms and concerns raised in media coverage of his boardroom coup.
Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
