New Mega constitution paves way for listing 8 Jul 2015
Related articles
- NZ consumers grow more upbeat, may resume spending Business
- Knowles quits as CEO of KiwiBank Business
- NZ migration bolstered by British invasion Migration
- NZ manufacturing activity reaches highest since 04 Business
- NZ dollar hits 22-month high vs euro Business
- Budget provides $321m for RS&T activities News
- OceanaGold finds new gold deposits at Fraser mine Business
- Transpower gets go-ahead for $170m SI upgrade Business
- NZ home sales creep up in March, still subdued Property
- NZ economy expands at fastest pace in two years Business
New Mega constitution paves way for listing after backdoor route closed
By Paul McBeth
July 8 (BusinessDesk) - Mega has updated its company constitution, making it easier for the file storage and encryption firm with more than 18 million registered users to list after a failed attempt to join the NZX through a back-door listing earlier this year.
The company filed a new constitution to the Companies Office on July 6 which added specific provisions for listing the company, stating that the "board shall take all reasonable steps to prepare the company for listing on a recognised stock exchange" and setting share sale restrictions for a maximum 12 months from the date of joining a bourse unless the board determined otherwise.
Mega chief executive Graham Gaylard said the new constitution would make it easier for the company to list, but declined to comment on the time frame for going public.
The company's website is already geared up to provide shareholder updates, with a page devoted to shareholder reports "when Mega becomes a publicly held company registered on a recognised stock exchange."
In May, the Auckland-based company aborted plans to list on the NZX via shell company TRS Investments after a series of delays in gaining approval to go ahead with the deal. The transaction would have seen TRS acquire Mega for $210 million by issuing 700 million shares at 30 cents apiece to Mega shareholders once a share consolidation was completed. Mega shareholders would then have owned 99 percent of TRS, which would have change its name to Mega.
The constitution also adds new provisions for the board to issue shares, including pro-rata issues to shareholders, small issues of up to 15 percent of Mega's stock in a 12-month period, and an employee share scheme not exceeding 6 percent of shares on issue at a price that's the greater of either the immediately prior issue or giving Mega a 'pre-money' valuation of $95 million.
Mega was launched by internet entrepreneur Kim Dotcom in 2013 to replace his Megaupload empire, which was frozen after his high profile arrest at the behest of the US federal government. He has since stepped back from the firm to fight his extradition and to bankroll the Internet Party, which failed to gain seats in parliament at last year's general election.
The company currently has 16 registered shareholders, of which director Shen Zhao Wu is the biggest investor with almost 26 percent of Mega. Shen is a regular donor to the National Party through his Contue Jinwan Enterprise Group, and increased his stake in Mega in a share issue amounting to 6.7 percent of the company in February.
The next biggest shareholding of about 16 percent held through TEY Trustee Ltd is frozen by a restraining order over the assets of Auckland businessman William Yan. Wolf Ortmann is the next biggest shareholder with 15.6 percent, followed by Dotcom's estranged wife Mona, via Coatsville Trustee Services, with 15.5 percent.
Earlier this year, PayPal stopped processing payments for Mega after NetNames, a US group with funding from the Motion Pictures Association of America, claimed it was among companies whose services were not legitimate or legally compliant.
Mega rebutted the claims with a legal opinion by international law firm Olswang, which found no evidence that the bulk files stored by Mega infringe on copyright holders, the firm's target audience is different from typical 'cyberlocker' users as its services wouldn't benefit them, that the platform isn't attractive for mass distribution, and that its business model is different from 'cyberlockers'.
The company is expanding its product offering to include encrypted audio and video calling, which is currently in beta mode.
(BusinessDesk)
News
Hilary Timmins' Award-Winning UK Documentary Series To Inspire NZ Students
29 Jun 2020 Education
Dream Catchers, produced and directed by Hilary Timmins, celebrates the success stories of more than thirty inspirational New... more
New Zealand reaffirms support for Flight MH17 judicial process
7 Mar 2020 News
Ahead of the start of the criminal trial in the Netherlands on 9 March, Foreign Minister Winston Peters has reaffirmed the need to... more
Business
NZ Government's Economic package to fight COVID-19
17 Mar 2020 Business News
The Coalition Government has launched the most significant peace-time economic plan in modern New Zealand history to cushion the... more
NZ Government announces aviation relief package
19 Mar 2020 Business News
Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier... more
Living
Diversity was Key at New Zealand Trade Tasting in London
6 Jun 2022 Food & Wine
New Zealand Winegrowers Annual Trade Tasting was recently held in London, on Wednesday 4 May, in Lindley Hall.
It was the first... more
Kiwi author stuns Behind the Butterfly Gate
12 Jan 2022 Arts
Hidden behind the Butterfly Gate is where the secret has been kept for 76 years...
New Zealand writer Merryn Corcoran’s... more
Property
Fairer rules for tenants and landlords
17 Nov 2019 Property
17 NOVEMBER 2019
The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer... more
New Zealand Government will not implement a Capital Gains Tax
17 Apr 2019 Property
The Coalition Government will not proceed with the Tax Working Group’s recommendation for a capital gains tax, Jacinda Ardern... more
Migration
Boosting border security with electronic travel authority – now over 500,000 issued
19 Nov 2019 Migration
19 NOVEMBER 2019
We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to... more
Christchurch reinstated as refugee settlement location
18 Aug 2018 Migration
18 AUGUST 2018
HON IAIN LEES-GALLOWAY
The announcement that Christchurch can once again be a settlement location for refugees... more
Travel
Gallipoli Anzac Day services cancelled
19 Mar 2020 Travel & Tourism
The New Zealand and Australian Governments have announced this year’s joint Anzac Day services at Gallipoli will be cancelled... more
New Zealanders advised not to travel overseas
19 Mar 2020 Travel & Tourism
New Zealanders advised not to travel overseas
more
Sport
The Skipper's Diary: Sir Richard Hadlee honouring his father and NZ's Forty-Niners
27 Oct 2019 Cricket
NZNewsUK London Editor Charlotte Everett spoke to Sir Richard Hadlee about why he’s chosen to publish his father’s... more
PREVIEW: All Blacks v England semi-final
26 Oct 2019 Rugby
The two most convincing quarterfinals winners are set to square off in a semifinal showdown for the ages when the All Blacks meet old... more
Columns
Gordon Campbell on the Gareth Morgan crusade
11 Nov 2016 Opinion
Gordon Campbell on the Gareth Morgan crusade
First published on Werewolf
The ghastly likes of Marine Le Pen in France and Geert ... more
Gordon Campbell on the US election outcome
10 Nov 2016 Opinion
Column - Gordon Campbell
Gordon Campbell on the US election outcome
Well um.. on the bright side, there (probably)... more
Kiwi Success
Congratulations to Loder Cup winner
26 Sep 2018 People
25 SEPTEMBER 2018
The Loder Cup, one of New Zealand’s oldest conservation awards, has been awarded to Robert McGowan for 2018... more
Appointments to New Zealand National Commission for UNESCO
16 Aug 2018 Appointments
16 AUGUST 2018Appointments to New Zealand National Commission for UNESCO
HON JENNY SALESA
Associate Education Minister Jenny Salesa is... more
Recruitment
Historic pay equity settlement for education support workers
14 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more
Historic pay equity settlement for education support workers
22 Aug 2018 Recruitment
14 AUGUST 2018Historic pay equity settlement for education support workers
RT HON JACINDA ARDERN
HON CHRIS HIPKINS
Prime Minister
The... more