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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Trade & Retail: Chinese Disaster Spells Quiet Season For NZ Fireworks Sales

In August, two massive explosions at a warehouse at the port in the port of Tianjin, Northern China, killing more than a hundred people and devastating large areas of the city. In the wake of the disaster, Chinese authorities rushed to regulate the distribution of all dangerous goods... More>>



Oceans: NOAA Declares Third Ever Global Coral Bleaching Event

As record ocean temperatures cause widespread coral bleaching across Hawaii, NOAA scientists confirm the same stressful conditions are expanding to the Caribbean and may last into the new year, prompting the declaration of the third global coral bleaching event ever on record. More>>

Scoop Business: A Decade Of Government Pre-Seed Investment

More publicly-funded science is being commercialised after a decade of government ‘pre-see’d investment, according to an independent review. More>>


Solid Energy: Plan To Shut Unprofitable Huntly East Mine

Solid Energy, the state-owned coal miner in voluntary administration, plans to shut down its unprofitable Huntly East mine and lay off 65 staff after deciding the site stands "no chance whatsoever" of finding a buyer. More>>


E Tū: Merger Creates NZ's Biggest Private Sector Union

E tū has been created by the merger of the Engineering, Printing and Manufacturing Union and Service and Food Workers’ Union. It represents more than 50,000 working New Zealanders in industries as diverse as aviation, construction, journalism, food manufacturing, mining and cleaning. More>>


Internet: NZ Govt Lifts Target Speeds For Rural Broadband

The government has lifted its expectations on faster broadband speeds for rural New Zealand as it targets increased spending on research and development in the country's information and communications technology sector, which it sees as a key driver for export growth. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news