APN raises $A160m in rights issue to institutions with 95% uptake
The funds will repay debt and provide capital for a standalone New Zealand company.
APN News & Media [ASX: APN] has raised $A160 million from the institutional component of its entitlement offer, with an uptake of 95% and the shortfall hoovered up at a premium.
The Sydney-based owner of NZME, whose media assets include the NZ Herald, Newstalk ZB and GrabOne, aims to raise a total of $A180 million in its underwritten 1:3 renounceable entitlement offer at 53Ac a share.
It will use the funds to repay some of its debt and, if it proceeds with the demerger of NZME, use some of the money to set up APN and NZME with appropriate standalone capital structures.
The remaining $A20 million of the offer is aimed at retail investors and opens on May 18, although trading of the retail entitlements begins on the ASX today on a deferred basis.
For the institutional portion, the shortfall was taken up by existing APN shareholders and others at 65Ac a share, a 23% premium to offer prices. The shares last traded at 63 cents before being halted for the capital raising and had dropped 33 percent in the past 12 months.
Talks with Fairfax NZ
APN is in talks with Fairfax Media about a potential merger of NZME with Fairfax's New Zealand assets.
The two companies say this would create "a leading New Zealand media business, offering depth of news, sport and entertainment coverage across a diverse mix of channels including print, digital and radio."
Analysts have 'buy' ratings on both companies and say exiting their New Zealand assets would allow them to better participate in consolidation of the Australian media sector, where media ownership laws are expected to be relaxed next year.
(BusinessDesk)
Jonathan Underhill
Fri, 13 May 2016
Fri, 13 May 2016
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APN raises $A160m in rights issue to institutions with 95% uptake
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