ConsMedia has this afternoon announced a significant share buyback requiring shareholder approval. This would involve buying back around 72m shares, consuming all but $25m of CMJ's cash balance.
Assuming Packer and Stokes don't sell shares into the buyback, their stakes in CMJ will rise from 45% to 51% (for ConsPress) and from 22% to 25% (for Seven).
Given that SGH looks headed towards focusing on non-media businesses (i.e. WesTrac), I wonder whether Stokes would consider selling Seven's stake in CMJ should Packer seek to privatise.
From businessspectator.com.au:
Seven Network deputy chairman and independent director Peter Ritchie said at the shareholders' meeting that the deal was "great" and WesTrac would overtake media as SGH's main business in coming years.
"The WesTrac side of this organisation is going to be the core of it in five years' time - mark my words," Mr Ritchie said.
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