In a major twist to its $200m contract fallout, ARN Media has seized back millions of shares from former Kiis FM stars Kyle Sandilands and Jackie “O” Henderson, as the broadcaster braces for a tense AGM over executive pay and leadership
Kiis FM owner ARN Media has scored a tactical win in its escalating dispute with former breakfast stars Kyle Sandilands and Jackie “O” Henderson, moving to reclaim millions of company shares previously issued under their now-derailed $200 million, 10-year contract.
As part of that deal, each host received a $3 million loan to acquire 3.2 million ARN shares – more than 1% of the company apiece – on the condition they held the stock for a decade. But after their partnership collapsed following an explosive on-air clash, Henderson quit and refused to return, prompting ARN to terminate her deal and, two weeks later, Sandilands’ as well. Both are now suing, each seeking more than $80 million in remaining contract value.
According to sources familiar with the situation, ARN has now successfully clawed back all 3.2 million shares from each host, ahead of what is expected to be a fiery annual general meeting. The stock is currently worth far less than when the contract was struck in late 2023, leaving Sandilands and Henderson forfeiting parcels now valued at about $800,000 each.
The outcome lands as chairman Hamish McLennan faces pressure over his role in signing the costly deal, and as shareholders prepare to vote on both his re-election and a contested $1.1 million pay package (plus incentives) for new chief executive Michael Stephenson. Despite governance concerns raised by one proxy adviser over the CEO’s remuneration, both major advisory firms are backing McLennan to stay, in a company where a small group of heavyweight investors already hold tight control of the register.
