KEY POINTS:
APN News & Media is likely to be privatised by early May if its suitors can convince a key shareholder to accept its offer of A$6.10 a share.
On Monday the board of APN recommended shareholders accept the share offer from the consortium of Sir Anthony O'Reilly's Independent News & Media and US-based Providence Equity Partners and Carlyle Group.
The APN board will issue a scheme booklet explaining the offer, which will have to be implemented after the new media ownership rules in Australia come into force.
The relaxation of rules which will allow media companies to be 100 per cent foreign owned is expected to happen in April or May.
APN spokesman Luis Garcia said the booklet would include an independent experts report compiled by accountancy firm Deloitte, which was appointed by the independent shareholders. Shareholders are expected to vote on the proposal in April.
The deal also needs to be approved by foreign investment regulators in New Zealand and Australia.
Garcia said the scheme must win the support of 50 per cent of individual shareholders and 75 per cent of the shares in the company to go ahead.
That figure excludes the shares at present held in APN by partners in the consortium who do not vote, including INM with 41.6 per cent.
Perpetual Investments, with 14.8 per cent, controls more than a quarter of the remaining stock and the Australian investment firm Maple-Brown Abbott has 8.13 per cent.
If the takeover goes ahead, INM would reduce its stake from 41.6 to 35 per cent. Providence Equity Partners would own 37.5 per cent and Carlyle 27.5 per cent.
But the British newspaper the Independent, which is owned by INM, said INM would have primary control of the business, retaining 39.3 per cent of APN voting stock as well as preferential rights to buy out the other investors should they want to get out.
APN independent board committee chairman Ted Harris said given that INM owns 41.6 per cent of the company, there were few expectations of an alternative bid and that if the scheme did not proceed the present share price of A$5.99 would lose its premium based on the expectation of a sale.
* APN New Zealand assets include the New Zealand Herald.
