New Zealand Herald
publisher APN News and Media said it could potentially sell
60 per cent of its New Zealand operation, according to offer
documents for a note issue.
Sydney-based APN said this week that it was considering
strategic options for its New Zealand business, which also
comprises several other newspapers, The Radio Network and the
online bargain business GrabOne.
"The potential New Zealand transaction is one of several
opportunities that we are considering and is dependent on
market conditions and a satisfactory valuation of APN NZ,
amongst other factors," it said in today's statement. At this
stage, it was uncertain as whether APN would proceed with the
"If we decide to proceed with the potential NZ transaction,
our ownership interest in APN NZ may be reduced by
approximately 60 per cent," it said.
The offering would be based on a number of factors, including
market conditions at the time of any sale, it said.
The potential New Zealand transaction assumed in the pro
forma financial information was based on the carrying value
of the net assets of APN NZ, not the fair value of that
"On this basis, pro forma gross proceeds to APN from the
potential New Zealand transaction would be A$308 million," it
APN said proceeds from the potential transaction would be
used to reduce debt.
In today's announcement, APN said it planned to raise US$250
million from a note issue. The net proceeds of the offering
will be used to repay APN's existing indebtedness.
"The proposed issue of notes in the US market would enhance
the flexibility we achieved in the recent refinancing, and
extend our debt maturities," chief executive Michael Miller
By Jamie Gray, APNZ business reporter