Prime Media Group has wasted little time in exerting its influence over Melbourne media company destra by removing its directors and chief executive.
Less than a day after revealing its stake in destra had jumped from 19.6% to 44% through a share rights issue, Prime chief executive Warwick Syphers was revealed as the only survivor of destra's board cull.
The destra directors who resigned this morning were chairman Carl Olsen, chief executive Domenic Carosa, chief financial officer Richard Wingrove, Joshua Landau and Neville Christie.
Mr Carosa's replacement as executive chairman will be David Gordon. Mr Gordon is the principal of Sydney-based media advisory business Lexicon Partners.
The third member of the board will be Peter Evans, a director of Prime.
Destra said the new board would undertake a strategic review of the company, including issues of business strategy and consolidation of destra's many different divisions.
"The new board will increase the focus given to consolidating the company's recent acquisitions,'' Mr Gordon said.
"Our objective is to introduce a stronger performance culture into all aspects of management,'' he said.
BusinessDay reported today that although Prime has breached the usual 20% trigger for compulsory takeover offers, Prime believes it will not be forced to make a formal takeover offer for destra.
Mr Syphers said destra's $15 million raising - $14.7 million of which was paid by Prime - would enable the company to undertake the review, and expressed confidence in Mr Gordon.
"David Gordon is one of Australia's pre-eminent corporate advisers in the media industry and has had a long-term association with Prime,'' he said in a statement.
"David and Lexicon Partners have Prime's full support.''
Destra said Mr Carosa would be retained as a consultant, and the deposed chief executive said he was proud of his role in the company's creation.
"Destra is now entering a new phase and I have full confidence that David Gordon and Prime will take it to the next level,'' he said.
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