KEY POINTS:
APN News & Media, publisher of The New Zealand Herald, has received a proposal for the acquisition of all its shares through a scheme of arrangement.
The scheme is from a consortium comprising Irish media baron Tony O'Reilly's Dublin-based Independent News & Media PLC, private equity firm Providence Equity and American private equity giant The Carlyle Group. The consortium is offering A$6.05 ($6.86) for shares in APN.
The proposal was inclusive of the final dividend and subject to due diligence, negotiation of a Scheme Implementation Agreement and regulatory approvals.
Ted Harris, chairman of the independent sub committee of the APN board , said the proposal would be considered by the committee which would decide whether it was in the best interests of all shareholders.
A recommendation would be made as quickly as possible.
The offer values APN at A$2.78 billion.
Shares in APN closed yesterday in Australia at A$6.10, having traded between A$4.43 and A$6.20 over the past 12 months.
The independent sub committee, set up to talk to the consortium includes Mr Harris, Sir Wilson Whineray and Kevin Luscombe. Grant Samuel is the financial adviser to APN.
APN is listed on both the Australian and New Zealand stock exchanges. Its operations include newspapers , radio, outdoor advertising, magazine and online operations in metropolitan and regional markets in Australia and New Zealand.
Independent News & Media, which is 26.4 per cent owned by Dr O'Reilly, owns 41 per cent of APN.
- NZPA
* 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.
