APN News and Media's share price fell by 4c (11.1 per cent)
to 32c on light volume when New Zealand share trading resumed
today after the resignation of the chief executive and
several directors late yesterday.
The dual-listed stock went into a trading halt last week
while the company sorted out its internal ructions and
considered a major capital raising excercise.
Brokers said it would not be until 12 noon NZ time, when
share trading in Australia starts, that investors will get a
true gauge of the market's reaction.
Last night, Ireland's Independent News & Media was
successful ousting half the APN board, as well as putting a
stop to a planned capital raising by the company.
Chief executive Brett Chenoweth, chairman Peter Hunt and
directors Melinda Conrad, John Harvey and John Maasland leave
the company today.
Independent director Kevin Luscombe will retire in April, as
previously planned, APN said.
The departing directors believed that a capital raising
should be undertaken when the Australia-based publisher and
broadcaster, which publishes the New Zealand Herald,
announces its annual results on Thursday.
"Independent News & Media plc and its major shareholder
together with [fund management company] Allan Gray
representing approximately 51 per cent of APN's shares have
unequivocally indicated they are opposed to a capital raising
at the present time," the company said in a statement on
The debt-laden Independent News & Media, owns 28.95 per
cent of APN, is in the throes of selling its South African
Equities research company, Morningstar, issued an "avoid"
recommendation on the stock.
"Traditional media faces structural challenges from online
competition, although it remains to be seen how much damage
will be done to the revenue streams of APN's newspaper
assets," Morningstar said in a research note.