Catalano slams SCA activist investor over vote meddling
Media owner Antony Catalano has attacked activist investor Sandon Capital over a tactical manoeuvre that may help unseat the Southern Cross Austereo board.
Last week Sandon, which owns just over 5% of SCA, applied for permission for fellow shareholder and SCA competitor ARN to use its full vote in a board member spill.
Antony Catalano
ARN is not allowed to do that because it broke ownership rules in acquiring a chunk of its 14.8% SCA holding last year.
Catalano, who co-owns more than 14% of SCA, expressed his disapproval to Capital Brief.
“I think Sandon’s panel application is an insult to all shareholders who have obtained their shares legally,” Catalano said.
“It’s appalling that any reputable investment fund would seek to support the purchase of shares that the panel found to have been obtained in unacceptable circumstances.”
Sandon wants to remove chair Heith Mackay-Cruise, and directors Ido Leffler, Carole Campbell and Marina Go. It has accused SCA of poor management in executive pay structures, and also criticised SCA’s decision to resume paying dividends. SCA has fought back, saying it has the support of the majority of shareholders.
It is not clear whether Sandon’s application to the Australian government’s Takeovers Panel was taken with ARN’s approval or not.
“Sandon seeks a variation to permit the Relevant Shares to be voted on the board-spill resolutions and an end date be applied to the general voting restriction so that the Relevant Shares be able to be voted at SCA’s next general meeting,” a letter from the Takeovers Panel read. The Panel is currently deliberating.
ARN has not yet commented on the matter.
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topics
Antony Catalano
Heith
Heith Mackay-Cruise
Marina Go
Sandon Capital
SCA
Southern Cross Austereo
If there is a legal mechanism for Sandon to apply to use ARN’s voting power, then, it is not illegal behavior. Strong words need to be based in fact.
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