NMNZ plans new share issue

News & Media NZ is planning a new issue of cumulative exchangeable preference shares.

The company's existing preference shares mature on November 30 when they can be exchanged for either $8 cash or shares in the Dublin-based media group Independent News & Media.

The conversion ratio was increased from 2 to 2.2194 INM shares for each preference share following a 4 for 15 rights issue approved by INM shareholders last month.

Under the planned new issue, existing holders will be offered two new $4 preference shares for each share they now hold.

The preference shares will pay a fixed dividend rate, which has yet to be announced, until their intended maturity date, November 30, 2007.

NMNZ, formerly Independent News & Media NZ, sold all of its operating subsidiaries, including New Zealand Herald publisher Wilson & Horton, to Sydney-based APN News and Media in December 2001.