APN raises A$83m in institutional offer

Australasian publisher APN, whose titles include The New Zealand Herald, has raised A$83 million ($107.6 million) from the institutional component of its entitlement offer.

A slightly higher than expected proportion of APN's shareholder register was included in the institutional offer, resulting in the proceeds from it being higher than the A$79m previously announced, APN said today.

Overall potential proceeds from the offer remained the same as previously announced at up to A$99m.

Under the entitlement offer, shareholders can buy one new APN share for every five existing shares, at a price of A$1 a share.

The retail component of the entitlement offer, which could raise about A$16m if fully subscribed, was due to open next Thursday and close on June 15.

Proceeds from the entitlement offer were being used to reduce APN's debt and strengthen its balance sheet.

When it announced the offer on Tuesday, APN said its largest shareholder, the debt-laden Irish group Independent News & Media (INM), would not take up any of its entitlements.

Based on the underwritten proceeds, APN's net debt position on a pro forma basis as at December 31, 2008, would reduce from A$911m to A$834m, the company said.

APN said talks were underway with its banks to extend its December 2009 debt maturities and it anticipated it would be able to announce an extension by the end of June.

The Sydney-based company said it would not pay an interim dividend in calendar 2009, after paying A10.5 cents a share a year ago.

- NZPA