10 December 2017 15:35:28 Tenet is the latest company to be accused of “playing fast and loose with the facts” in relation to the $6.9 billion acquisition that closed in March.
A series of articles by The Australian Financial Review, The Australian, The Wall Street Journal, and the Financial Review have focused on the extent of the alleged “fraud” by Tenet in the process.
Tenet has denied the allegations, which have been referred to the ACCC.
“As you would expect we have been working closely with the ACCCC to ensure this matter is resolved appropriately and fully and we are taking all necessary actions to make sure the ACCCN’s inquiries are properly dealt with,” Tenet’s chief executive, Chris Fenton, said in a statement.
“The ACCCN have also asked us to provide further information on our compliance procedures and we will do so as soon as possible.”
Tenet was granted approval to make the acquisition last week and has now begun preparing for its IPO.
Tenets shares have already risen about 50 per cent in the past 24 hours, following the release of the articles.
However, the price has fallen in the wake of the ACCN’s latest inquiry, and has since dropped back below $5.
“Today’s news confirms that investors and investors in general are now much more skeptical about the ACC CN’s ability to effectively enforce its own regulatory and enforcement processes, as we’ve been warning all along,” Mr Fenton said.
“In light of this, we will be reviewing our business strategy and will continue to monitor the ACCCW for any signs of the company’s continued involvement in this matter.”
The ACCCN investigation into Tenet follows an ACCC investigation into Mediacor in February 2018.
“There is no doubt that the ACCCM and ACCCN are engaged in a joint investigation,” a Tenet spokesperson told Business Insider.
“We will provide further comment as this investigation is completed.”
The company has also been slammed by investors for failing to make a $6 million cash payment to Mediacrancorp and has also faced criticism from some members of the community.
“Tenet has not made a single payment to the company since the company entered the public markets in July 2017, when Mediacors shares traded for less than $4,” a shareholder wrote on a shareholder website.
“It has been a complete failure of corporate governance, and not only from Tenet, but from Mediacarr, too.”