Seven Shareholders Votes for WesTrac Merger

Submitted by Share Trading on 21 April, 2010 - 03:52

Seven Network (SEV) have voted to approve the Westrac merger (approved by 88.78 per cent of votes cast (57,664,147 shares) and 69.27 per cent of actual holders (1880) in favour - a proposed scrip for scrip of Seven Network and the Westrac Group which is privately owned by Kerry Stokes.

The new entity will be called Seven Group Holdings. Holders of SEV's TELYS3 hybrid securities also voted in favour of the merger at (85.72 percent) for an exchange one for one of TELYS4 securities to be issued by the new company.

Seven network is went into a Trading halt on Tuesday for a shareholder's meeting and on resuming trade, the stock was up at $7.82. Key minority shareholders backed the deal last week including: boutique fund manager Ausbil Dexia and investment manager Perennial Value. However, their agreement was conditional on Kerry Stokes foregoing $130 million worth of shares in the merged entity if WesTrac, a Perth-based Caterpillar products dealer, does not meet its 2010/11 earnings before interest, tax, depreciation and amortisation target of $231 million.