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SYDNEY - The owner of the New Zealand Herald newspaper and other media assets in New Zealand has agreed to a revised takeover offer from a consortium including Tony O'Reilly's Independent News and Media Plc.
In the deal Mr O'Reilly's Irish company reduces its stake in the Australian company APN News and Media to 35 per cent from 42 per cent.
APN owns New Zealand's largest daily paper and a string of radio stations.
APN on Monday agreed to a revised A$2.8 ($3.22) billion offer from a consortium including Independent and private equity firms Carlyle Group and Providence Equity Partners.
The consortium raised their offer to A$6.10 per share from last month's A$6.05 per share, APN said in a statement.
The deal values APN at A$2.8 billion, or A$3.8 billion when debt and convertible notes are included in the valuation.
Independent will reduce its stake in APN to 35 per cent from 42 per cent under the deal, while Caryle will hold 27.5 per cent and Providence 37.5 per cent.
Previous talks ended in November, after Independent made a joint approach with Providence at A$6.02 per share.
"After negotiating the increase from the initial proposal of A$6.02 per share to a final offer of A$6.10, the independent committee has formed the view that the increased offer is in the shareholders' best interests and we recommend all shareholders vote in favour of the proposal," Ted Harris, chairman of APN's independent committee, said in a statement.
The deal values APN at 13 times attributable 2006 earnings before interest, tax, depreciation and amortisation (EBITDA), APN said.
APN shares closed on Friday at A$6.05 per share.
- REUTERS
* APN owns nzherald.co.nz, the New Zealand Herald, Herald on Sunday, Aucklander and other papers throughout the country. It is also joint owner of The Radio Network.
