APN News & Media placed in trading halt as it plans for $200m-plus capital raising
APN News & Media has been placed in a trading halt following reports the media company plans to launch a $200m-plus capital raising in conjunction with a demerger of its New Zealand assets.
APN News & Media has been placed in a trading halt following reports the media company plans to launch a $200m-plus capital raising in conjunction with a demerger of its New Zealand assets.
According to the report in The Australian, APN News & Media will update the market on the planned divestment of its Kiwi business, called NZME, at its annual general meeting on Wednesday.
According to APN News & Media’s full-year results released in February, NZME’s total revenues were down 3%.
The capital raising would be an effort to raise cash tp pay down debt in the NZME business as it prepares to float it on the New Zealand stock exchange.
The Australian has reported APN will pursue an “in-specie” distribution of NZME to its existing shareholders, meaning shareholders would hold stock in APN and a separately listed NZME.
The company, which boasts radio, regional newspapers and outdoor assets, will remain in a trading hold until the commencement of normal trading on Wednesday, May 11.
The capital raising follows on from APN News & Media signalling in February its plans to sell off its struggling Australian Regional Media arm.
APN News & Media was trading at 63 cents when trading was suspended giving the company, which owns Australian Radio Network, outdoor company Adshel, NZME and Hong Kong Outdoor, a market capitalisation of $648.30m.
Miranda Ward worked for Mumbrella from 2013 to 2017, eventually becoming deputy editor. Miranda joined Mumbrella in September 2013 from Sky News.
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