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

 

Must Sell 20 Petrol Stations: Z Cleared To Buy Caltex Assets

Z Energy is allowed to buy the Caltex and Challenge! petrol station chains but must sell 19 of its retail sites and one truck-stop, the Commerce Commission has ruled in a split decision that acknowledges possible retail price coordination between fuel retailers occurs in some regions. More>>

ALSO:

Huntly: Genesis Extends Life Of Coal-Fuelled Power Station To 2022

Genesis Energy will keep its two coal and gas-fired units at Huntly Power Station operating until 2022, having previously said they'd be closed by 2018, after wringing a high price from other electricity generators who wanted to keep them as back-up. More>>

ALSO:

Dammed If You Do: Ruataniwha Irrigation Scheme Hits Farmer Uptake Targets

Enough Hawke's Bay farmers have signed up for water from the proposed Ruataniwha Water Storage Scheme for it to go ahead as long as a cornerstone institutional capital investor can be found to back it, its regional council promoter announced. More>>

ALSO:

Reserve Bank: OCR Stays At 2.25%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2.25 percent, in a decision traders had said could go either way, while predicting inflation will pick up as the slump in oil prices washes out of the data and capacity pressures start to build in the economy. More>>

ALSO:

Export Values Down: NZ Posts Biggest Annual Trade Deficit In 7 Years

New Zealand has recorded its biggest annual trade deficit since April 2009, reflecting weaker prices of agricultural commodities such as dairy products, beef and lamb, and increased imports of vehicles and machinery. More>>

ALSO:

Currency Events: NZ's New $5 Note Wins International Banknote Award

New Zealand’s new Brighter Money $5 note has been named Banknote of the Year in a prestigious international competition. The $5 note was awarded the IBNS Banknote of the Year title at the International Bank Note Society’s annual meeting. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news