Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


APN shares soar after institutions stump up A$112M in capita

APN shares soar after institutions stump up A$112M in capital raising

By Paul McBeth

Feb. 21 (BusinessDesk) - Shares in APN News & Media surged to an 18-month high when they resumed trading after institutions put up A$112 million in a planned capital raising for the media group to buy out its partner to take control of its radio businesses.

The dual-listed stock rose 14 percent to 56 cents on the NZX, its highest level since Aug. 16, 2012, and was up 22 percent to 53.7 Australian cents on the ASX.

The Sydney-based company raised A$112 million from institutions with about 98 percent of those eligible investors taking up their 5 for 9 entitlement at 36 Australian cents a share. A further A$20 million will be raised from existing retail investors when the offer opens on Feb. 27. Both parts of the capital raising were underwritten by CBA Equities.

“We are delighted with the support that we have received from our shareholders,” chief executive Michael Miller said in a statement. “In addition to the high take-up rate, we are also very encouraged by the significant interest from new institutional investors.”

APN has been restructuring its business over the past year, quitting assets including its stake in an outdoor advertising venture, its unprofitable brandsExclusive online shopping site and a suite of New Zealand magazines

The capital raising will go towards buying out APN’s US partner Clear Channel’s stake in Australian Radio Network and The Radio Network in New Zealand for A$246.5 million. The rest will come from A$60 million reaped from the sale of its outdoor advertising business and A$61 million in existing bank debt.

The issue has the backing of major shareholders Allan Gray Australia, Independent News & Media and Irish billionaire Denis O’Brien’s Baycliffe.

That’s a turnaround for Independent News and Allan Gray, who last year forced a board-room shake-out of the Australian media group after baulking at APN’s plans to raise capital to shore up its own debt-plagued books.

Independent News, which raised 43 million euros of fresh capital last year to protect its APN stake, won’t participate and will be diluted to 18.6 percent from 29 percent. Its entitlement will be taken up by Baycliffe, lifting its stake to 12.2 percent from 1.9 percent and keeping O’Brien’s total interest in APN through the two companies at 30.8 percent.

“Having recently concluded a substantial restructuring and strengthening of its balance sheet, including a significant equity issue, INM’s priority objective at this time is to retain the operational flexibility necessary to reposition its operations for an improvement in Ireland’s evolving media market,” the Irish company said in a statement earlier this week.

“INM is fully supportive of APN’s strategy - the acquisition of the remaining 50 percent of its radio assets and the related capital raise - and remains fully committed to retaining its strategic stake in an enlarged APN,” it said.

(BusinessDesk)


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Lower Levy For Safer Cars: ACC Backtracks On Safety Assessments

Dog and Lemon: “The ACC has based the entire levy system on a set of badly flawed data from Monash University. This Monash data is riddled with errors and false assumptions; that’s the real reason for the multiple mistakes in setting ACC levies.” More>>

ALSO:

Fast Track: TPP Negotiations Set To Accelerate, Groser Says

Negotiations for the Trans-Pacific Partnership will accelerate in July, with New Zealand officials working to stitch up a deal by the month's end, according to Trade Minister Tim Groser. More>>

ALSO:

Floods: Initial Assessment Of Economic Impact

Authorities around the region have compiled an initial impact assessment for the Ministry of Civil Defence, putting the estimated cost of flood recovery at around $120 million... this early estimate includes social, built, and economic costs to business, but doesn’t include costs to the rural sector. More>>

ALSO:

Food: Govt Obesity Plan - No Tax Or Legislation

Speaking to Q+A’s Corin Dann this morning, health minister Jonathan Coleman said tackling obesity was at the top of the Government’s priority list, but there was “no evidence” a sugar tax worked, and further regulation was unnecessary. More>>

ALSO:

Treasury Docs On LVR Policy: Government Inaction Leads To Blurring Of Roles

The Treasury wouldn’t have had to warn the Reserve Bank to stick to its core functions if the Government had taken prompt and substantial measures to rein in skyrocketing Auckland house prices, Labour’s Finance spokesperson Grant Robertson says. More>>

ALSO:

Final EPA Decision: Tough Bar Set For Ruataniwha Dam

Today’s final decision by the Tukituki Catchment Board of Inquiry is good news for the river and the environment, says Labour’s Water spokesperson Meka Whaitiri. “Setting a strict level of dissolved nitrogen in the catchment’s waters will ensure that the dam has far less of an impact on the Tukituki river." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news