Sir John Anderson to chair a listed NZME.

Sir John Anderson to chair a listed NZME.

By Suze Metherell

Oct. 9 (BusinessDesk) - Sir John Anderson, former head of ANZ National Bank and National Bank of NZ, has been appointed to head the board of NZME., as its Australian publisher owner, APN News & Media, carves out its New Zealand operations for sale.

Anderson has been appointed "chairman designate" of the re-branded media company, which publishes The New Zealand Herald and owns The Radio Network and GrabOne businesses, the Sydney-based parent said in a statement. In September, APN said it was considering an initial public offer on the NZX, while retaining a 40 percent stake in NZME.

NZME. has finished presentations to banks and will issue a request for proposal to manage its initial public offer shortly. Anderson currently heads the boards of the Steel & Tube Holdings and National Property Trust, is deputy chair of Turners & Growers and a director of the Commonwealth Bank of Australia. He once headed the Television New Zealand board as well as the NZ Venture Investment Fund and PGG Wrightson.

"It's a great endorsement for NZME. that the company and management team can attract one of New Zealand's most respected directors, who clearly sees the potential of the business," APN chairman Peter Cosgrove said.

An initial public offer of 60 percent of NZME would generate some A$308.6 million of gross proceeds, based on the carrying value of the unit. Of that, some A$169.4 million would be raised through the float, and a further NZ$150 million from a 'note payable' as a result of restructuring the New Zealand unit, according to the offer documents APN released when it was attempting to raise US$250 million in an unsecured note offer to American investors. It has since abandoned the US notes plan, after they were assigned a sub-investment, or junk grade rating, by the major three rating agencies.

In August, the New Zealand unit posted an 8 percent decline in first-half revenue to A$201.6 million, and a 9 percent fall in earnings before interest, tax, depreciation and amortisation to A$34.6 million, reflecting the sale of South Island and Wellington community newspapers, and several magazine titles, including the weekly Listener magazine, to Germany’s Bauer Media.

Shares of dual listed-APN rose 1.2 percent to 83 Australian cents on the ASX and were unchanged at 90 cents on the NZX.

(BusinessDesk)

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