W&H windfall for INM

Independent News & Media NZ, formerly known as Wilson & Horton Holdings, yesterday posted an after-tax profit of $336.4 million for the year to December 31.

The result, which compares with a loss of $70.8 million a year earlier, includes a net $285.7 million windfall from the sale of mastheads and shares in its operating subsidiary, Wilson & Horton, to Australian media company APN News & Media in December.

As a result of the A$1.2 billion ($1.46 billion) sale, INM no longer has any direct links to its former assets - which included the New Zealand Herald and eight other daily newspapers.

INM now has no subsidiary companies and operates only as an investment company.

The result relates only to the holding company, which is controlled by Irish tycoon Sir Anthony O'Reilly's global newspaper and media company Independent News & Media plc.

Sir Anthony's company also owns 40 per cent of APN News & Media.

INM recorded an operating profit before tax of $314.3 million, including unusual items of $1.3 million from realised and unrealised foreign currency exchange losses.

The company will pay holders of its convertible preference shares - which last traded on the New Zealand Stock Exchange up 5c at $8.50 - a fully imputed dividend of 20c a share on May 31.

INM said it has enough investment income to continue to meet its obligations to holders of preference shares.

The preference shares will trade on the local sharemarket until November next year, when shareholders can elect to exchange each preference share for $8 cash or two ordinary shares in their parent company INM plc.

Based on the Dublin-based company's March 13 share price of €2.08, the second option would work out at $8.47 a share, INM said.

INM will hold an annual meeting in Auckland on June 21.

- NZPA