Proposed Demerger of NZME

MARKET ANNOUNCEMENT

Proposed Demerger of NZME

Summary

• Proposed Demerger of NZME to APN shareholders (Demerger)

• NZME to be listed on NZX (primary listing) and ASX (foreign exempt listing)

• Enables APN to focus on its Australian growth media assets of radio and outdoor

• NZME will be a leading integrated media and entertainment business in New Zealand

• Independent Board and management team for each business – Sir John Anderson appointed Chairman of NZME

• Eligible APN shareholders will receive one share in NZME for each existing APN share

• Prudent and sustainable capital structure for APN (post Demerger and Entitlement Offer) and NZME

• APN to also undertake a 1 for 7 share consolidation (Share Consolidation)

• Shareholder meeting to approve the Demerger and Share Consolidation to be held on 16 June 2016

• APN directors consider that the Demerger is in the best interests of APN shareholders and recommend that shareholders vote in favour of the Demerger

• Independent expert has concluded that the Demerger is in the best interests of APN shareholders

• APN to raise approximately $180 million through a fully underwritten 1 for 3 accelerated renounceable entitlement offer with retail entitlements trading (Entitlement Offer) (see separate ASX & NZX release lodged today)

• APN and Fairfax Media Limited (Fairfax) separately announced entry into exclusive discussions regarding the potential merger of their respective New Zealand businesses (see separate joint ASX & NZX release lodged today)

Full release [PDF]

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