Media Insider: Canadian billionaire James Grenon takes substantial stake in NZ Herald publisher and Newstalk ZB owner NZME

BusinessDesk revealed in 2023 that Grenon – the founder of Calgary-based investment firm Tom Capital Management – was associated with an alternative news venture, The Centrist, and its sister website NZNE.

As BusinessDesk reported, “NZNE and its sister website, The Centrist, have emerged over the past year amid a proliferation of new media companies formed to challenge established ‘mainstream’ outlets, often targeting disaffected groups on the political fringes”.

The Centrist, as late as last month, was referencing commentary about recent NZME newsroom changes with a headline: “Is the Herald abandoning its role as a newspaper of record in favour of clickbait?”

According to BusinessDesk, Grenon served as the sole shareholder and director of The Centrist until June and August 2023 respectively, before handing over the roles after those dates to Tameem Adam Abdul-majeed Barakat.

He was also one of more than 30 individuals or groups who had registered with the Electoral Commission as “promoters” for the 2023 election.

In an email to the NZ Herald last week, following a request for an interview, Grenon said he would respond, but it would not be in the next few days. He has been approached again for comment today, by email.

He previously told BusinessDesk, in response to questions about his links to NZNE and The Centrist: “You know, I am a private person, and I would like it to stay that way, so I have no comment.”

The Australian reported recently that “some wealthy Kiwis” – including an unnamed Canadian billionaire – were planning a bigger stake and even looking at privatisation of NZME, which also owns property portal OneRoof.

The Australian speculated new owners could help shape the editorial direction of the Herald.

It suggested that Nick Mowbray – the co-founder of the toy business Zuru – was a potential candidate, along with the unnamed Canadian billionaire.

Mowbray himself quashed speculation of his own involvement. “This is news to me. The Herald is the most fair of [the] NZ media mix,” Mowbray told Media Insider at the time.

In a statement to Media Insider today, NZME chief executive Michael Boggs said: “As a listed company on the NZX and ASX, NZME’s shareholding changes regularly due to trading of shares and changes in shareholders.

“When a shareholder becomes a significant holder (over 5%) they have to notify the exchange, and for every 1% movement thereon in. Through our investor relations programme we regularly engage with shareholders but have had no interaction with Mr Grenon to date.

“As a public company, NZME is governed by an independent Board of Directors who must act in the best interests of the company and all shareholders.”

Grenon’s move to NZ

Grenon moved to New Zealand in 2012 and owns one of the country’s most expensive homes in Takapuna.

In 2023, BusinessDesk reported that Grenon’s enormous wealth and move to New Zealand made headlines in Canada when he shifted C$55 million to NZ “while embroiled in court action with the Canada Revenue [Tax] Agency over a sophisticated investment fund structure he had created as the annuitant of a registered retirement savings plan”.

At the heart of the action and appeals, the business website reported, were whether tax exemptions rising from the funds involved were tax avoidance structures.

“At one point, the tax agency tried but failed to stop Grenon from shifting the C$55m to NZ on the basis that an alleged C$283m of tax debt might not be repaid should the agency win its case,” BusinessDesk reported.

“The agency’s so-called jeopardy order to halt the money transfer was unsuccessful. Court hearings, including appeals over nearly a decade, resulted in Grenon securing wins and losses along the way.”

The business website, quoting court documents, said Grenon completed a law degree at the University of Manitoba in 1980.

He practised briefly as a lawyer before pursuing corporate and finance interests. “The documents also revealed he gained significant wealth from the early stages of the oil and gas industry and had a penchant for in-depth study of tax law and, it would appear, for litigation.”

Election ‘promoter’

Grenon was also one of 32 individuals or groups who had registered with the Electoral Commission as “promoters” for the 2023 election.

“For the period 1 July 2023 to 30 June 2024, a promoter had to register with us if it spent, or intended to spend, over $15,700 [including GST] on election advertising during the regulated period [generally three months] before election day,” the commission states.

Figures later released by the commission show that of the registered third-party promoters, seven spent more than $100,000 in the lead-up to voting.

Only groups that spent more than $100,000 were required to share their expenses – Grenon was not one of them.

NZME’s finances

NZME announced last week earnings of $54.2 million and a post-tax loss of $16m after a non-cash impairment of intangible assets – and said it was considering separating its property brand OneRoof into an entirely new business.

NZME shares were trading at $1.04 before the company’s financial results announcement on Wednesday. By the close of day, they had jumped 15% to $1.20 on the NZX. They have eased back slightly since then and opened on Monday at $1.15.

Editor-at-Large Shayne Currie is one of New Zealand’s most experienced senior journalists and media leaders. He has held executive and senior editorial roles at NZME including Managing Editor, NZ Herald Editor and Herald on Sunday Editor and has a small shareholding in NZME.