APN News & Media, which publishes the New Zealand Herald newspaper, will seek shareholder approval to arrange a new funding line for its outdoor advertising joint venture with Quadrant Private Equity.
BUSINESSDESK: APN News & Media, which publishes the New Zealand Herald newspaper, will seek shareholder approval to arrange a new funding line for its outdoor advertising joint venture with Quadrant Private Equity.
The APN Outdoor deal wants a standalone debt facility of up to A$250 million, and will need shareholder approval to load the new vehicle with debt. APN has called an extraordinary general meeting to be held in Sydney on April 11, and needs 75 percent support to get over the line. The funds will help refinance existing debt.
“The APN board considers the joint venture to be an exciting opportunity to further expand our successful position in the outdoor advertising sector,” chairman Gavin O’Reilly said in a letter to shareholders. “Investor reaction has been positive and I encourage you to support the joint venture by voting in favour of the resolution.”
Last month, APN agreed to sell half of its outdoor advertising business across Australia and New Zealand as well its Indonesian investment to the Australian private equity firm for A$190 million.
The JV will keep the APN Outdoor moniker, and the deal values the company at A$272 million on an enterprise value basis.
The media company posted an annual loss after writing down the value of its New Zealand mastheads, and has been looking at ways to restructure its publishing model.
The dual-listed shares last traded at $1.12 on the NZX, valuing the company at NZ$705.8 million by market capitalisation.
