Seven - Westrac Deal, Investors Back Merger

Submitted by Share Trading on 12 April, 2010 - 11:37

Key large shareholders in Seven Network (SEV) have agreed to back the controversial merger between the Australian TV broadcaster and the heavy equipment company, Westrac.

Kerry Stokes, who holds a controling stake int he two companies has agreed to protect Seven shareholders by cancelling part of the share payment to his holding company Australian Capital Equity Pty Ltd (ACE) if Westrac fails to meet its earnings forecast for the 2011 financial year.

Seven's two biggest independent shareholders, Ausbil Dexia and Perennial Value who together represent 28.1 per cent of shares, who make up more than a quarter of the independent shareholders, said they would vote for the scheme with the new guarantee.