APN News & Media Limited Demerger Of Its New Zealand Business, NZME
We are acting for APN on the demerger of their New Zealand business NZME, supported by a capital raising of approximately $180 million through a fully underwritten 1 for 3 accelerated renouncable offer with retail entitlements trading.
APN announced the capital raising and proposed demerger of NZME on 11 May 2016.
NZME will have a primary listing on the NZX and will also have a secondary listing on the ASX. NZME will be a leading integrated media and entertainment business in New Zealand. The demerger will be effected by an equal capital reduction and in-specie distribution of shares in NZME. Eligible APN shareholders will receive 1 share in NZME for every APN share they hold. APN will also be pursuing a 1 for 7 share consolidation.
Baker & McKenzie lead partner on the transaction, David Holland commented: "We are delighted to be acting for APN as they look to restructure themselves for future growth by creating two independent media companies. The demerger will enable an independent focus for each of APN and NZME and allow them to pursue their own strategic priorities and growth opportunities."
According to media reports, the demerger would free APN to focus on its growth media assets of radio and outdoor.
Baker & McKenzie's lead partner on the capital raising side, Lauren Magraith stated: "The capital raising will assist APN to retire debt, and if the demerger proceeds, to facilitate appropriate capital structures for both APN and NZME. We are pleased to have assisted APN in what has been a very successful offering so far, with over 95 percent of eligible institutional shareholders taking up their entitlements under the accelerated institutional component of the offer."
APN and Fairfax Media Limited have separately announced entry into exclusive discussions regarding the potential merger of their respective New Zealand businesses.
APN is a leading provider of advertising across outdoor, print, online and radio in Australia and New Zealand, with a growing outdoor business in Hong Kong.
This transaction follows Baker & McKenzie's recent roles advising HanesBrands on its acquisition of Pacific Brands Limited, the joint lead managers on the USD135 million institutional placement and selldown by Aconex Limited, the joint lead managers on the AUD494 million entitlement offer by Qube Holdings Limited, to fund Qube's participation in the c. AUD9 billion takeover of Asciano Limited, and the joint lead managers on the USD405 million entitlement offer by Spark Infrastructure, to fund Spark Infrastructure's participation in the AUD10.258 billion acquisition of TransGrid.
The Baker & McKenzie team involved in advising APN on the demerger and capital raising included partners David Holland, Lauren Magraith, Adrian Lawrence, Amrit McIntyre and John Walker, who were assisted by senior associates Hoda Nahlous, Belinda Barnes, Maria Pawelek and Peter Debney, and associates Ivo Basoski, Rebekah Lam, Jeanie Chang, Mary Cate Byrne, Allison Manvell, Matthew De Cataldo and Janet Cho.