APN raises A$23 mln in oversubscribed retail offer
March 19 (BusinessDesk) - APN News & Media, the Australasian publisher of the New Zealand Herald newspaper, raised about A$23 million in the retail
component of a capital raising to take control of its radio businesses, buying out its partner.
Investors in the media group subscribed for A$26.3 million in a 5-for-9 non-renounceable entitlement offer, of which
A$17.7 million represented entitlements and A$8.6 million applications for new shares, the Sydney-based company said in
a statement. Coupled with an institutional offer, APN has raised some A$132 million at 36 Australian cents a share, it
said.
“APN received demand significantly in excess of the total number of new shares available under the retail entitlement
offer,” the company said. “Consequently, 100 percent of new shares available under the retail entitlement offer have
been allocated to APN’s existing eligible retail shareholders.”
The dual-listed shares have soared almost 50 percent to 61.5 Australian cents on the ASX since the capital raising was
announced. They last traded at 65 cents on the NZX.
The media group 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 been backed by 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 repay bank debt and avoid a fire sale of
its APN stake, didn’t participate and was diluted to 18.6 percent from 29 percent. Its entitlement was 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.
(BusinessDesk)