Independent News & Media has confirmed that it has approached the board of Australia's APN News & Media regarding a possible buyout of the entire share capital of the company. The bid has been made in conjunction with Providence Equity Partners and other capital partners. INM currently owns 40% of the company.
INM said it intends to reinvest a significant part of its likely proceeds from the consortium's offer so that it retains, indirectly, its 40% interest in APN on completion of the deal.
It added that if the deal is concluded, it is envisaged that INM will manage and run APN, which will no longer be a subsidiary of INM but will be accounted for as an associate company.
Indo said the approach was preliminary and is subject to a number of conditions including due diligence; implementation of the new media laws in Australia and such other regulatory and board approvals as may apply.
'Accordingly no further information can be provided by INM at this time. Any further announcements required will be made without delay,' a statement from the company said this morning.
Earlier APN said it had received a buyout approach from Independent News and Media, as firms jostle for position in expectation of a shake-out Australia's A$12 billion media sector. APN's shares jumped as much as 11% on the statement.
The move follows share raids last week by Australia's media moguls Rupert Murdoch and Kerry Stokes on rival groups, positioning themselves for industry consolidation after parliament passed a law relaxing 20-year-old limits on foreign and cross-ownership of newspapers, television and radio stations.
APN is a major regional publisher with 24 daily and more than 90 non-daily newspapers across Australia and New Zealand, and has interests in radio and outdoor advertising.
Rupert Murdoch's News Corp last week bought a 7.5% stake in Australia's No 2 newspaper group John Fairfax Holdings and Seven Network bought 14.9% of West Australian Newspapers Holdings.
At the same time, Publishing & Broadcasting , controlled by Australia's richest man, James Packer, said it would spin off its TV, magazines and Internet assets into a joint venture to be owned by PBL and CVC Asia Pacific.
INM's move on APN comes amid speculation that Macquarie Media Group may be considering a bid for Australia's largest regional television network, WIN Corp. Macquarie last week denied that its regional radio stations were for sale.
INM shares were up eight cent to stand at €2.63 in Dublin this evening.
