Credit: Robert Stump via Unsplash
Sandon Capital, an activist investor after the scalps of the members of the broadcaster SCA’s board of directors, has had a small win.
The funds manager is campaigning for change at SCA, including sacking and replacing the board of directors, describing them as being in “self-preservation” mode in a tough advertising market.
It has attacked the company’s decision to resume paying dividends, its announcement of an “unrealistic” executive bonus scheme and says SCA needs to further reduce debt levels.
Sandon earlier this month lifted its holding in SCA by almost a third to 8.1% from 6.1%, giving it 19,464,222 shares, according to fillings to the ASX.
In the latest, Sandon had applied to regulator the Takeovers Panel to allow SCA competitor ARN media to vote its 6.83% holding in a board spill motion.
The Takeovers Panel had in 2023 ruled “unacceptable” how ARN acquired shares in SCA from fund manager Allan Gray.
However, the panel, after representations from Sandon, has now decided to allow ARN to use 3% of its voting power in SCA.
It’s not known how ARN will vote its holding when it comes to a board spill motion.
However, the board of directors at SCA are unimpressed.
They point out that the Takeovers Panel move will not affect the statement that shareholders Thorney Investment Group (and associates) (15%), Spheria Asset Management (10%) and Ubique Asset Management (10%) intend to vote against the spill
Media owner Antony Catalano and billionaire Alex Waislitz, with a 14.42% stake in SCA via investment vehicle 19 Cashews, have previously gone public against the activist fund’s move.
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