Experts have suggested that only a complete overhaul of Nine's board will allow it to successfully go public, amid reports previous treasurer Peter Costello and former Fox executive David Haslingden will join a revamped board.
It has been reported in the Australian Financial Review that the company has put forward a proposal for a new board structure which will include Haslingden as chairman and Costello as independent director.
The company has reportedly suggested a nine-person board structure to primary investors Oaktree Capital and Apollo Global Management. The proposal comes as the 21 January meeting, which will most likely see the approval of Nine's $3.4 billion recapitalisation, moves closer.
It has been reported the new board would also include Publicis Mojo chief executive Joe Pollard and former Southern Star chief Hugh Marks.
The market is expecting Nine Entertainment Co to list on the Australian Securities Exchange by the end of the year, and experts have suggested that a complete restructure of the board must occur if the company wants to successfully go public.
Cox Media principal Peter Cox said: “They had to get rid of the old board, there needs to be a change. The last board was totally inappropriate.”
Fusion Strategy managing director Steve Allen said: “If Nine is going public, then it's going to be asking people for their money, and media isn't exactly the darling of the stock market at the moment. So Nine would need to go to market will a stellar new line-up.”
However, Allen also suggested the line-up currently being suggested might not be set in stone. “I think at the moment it is all very early, and this seems very speculative. If it is not speculative, then it seems very rushed.”
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