19th Feb 2014 13:31
LONDON (Alliance News) - Independent News and Media Public PLC said Wednesday that it would be reducing its stake in APN News & Media Ltd as it opts out of joining APN's AUS132 million capital raise to finance its acquisition of the remaining 50% interest in its Australian and New Zealand radio assets.
Independent News & Media has a 28.95% interest in the Australian and New Zealand-based media company, but as it has chosen not to participate in the equity issue, its stake will drop to 18.61%.
"INM is fully supportive of APN's strategy - the acquisition of the remaining 50% of its radio assets and related capital raise - and remains fully committed to retaining its strategic stake in an enlarged APN," the company said in a statement.
For the financial year 2013 APN saw net profit after tax and before exceptional items rise 10% to AUD59.5 million from AUD54.3 million in the previous year.
APN's revenue declined to AUD817.2 million from AUD823.0 million. The company said it had made "considerable progress" in streamlining its operation. It sold its APN Outdoor and brandsExclusive during the year, as well as its New Zealand magazine titles. The acquisition of the remaining share in the Australian and New Zealand radio businesses is also part of its plan to streamline its operating structure, APN said.
"We are confident that radio will continue to grow as a medium and that ARN and TRN will continue to capture a greater share of the market," said Chief Executive Officer of APN Michael Miller in a statement.
APN chose not to pay a dividend.
Shares in Independent News & Media last traded flat at EUR0.150.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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