NZME may buy Adshel’s local business for $A156 million (NZ$167m) after former parent APN News & Media’s buy-out of the outdoor advertising business triggered an option for the local media group to buy the assets on the same terms, according to a report in NBR online.
Sydney-based APN has signed a deal to buy the 50% of Adshel it didn’t already own from Clear Channel Outdoor, giving it control of 22,000 static and digital panels across Australia and New Zealand.
The newspaper said Adshel generated earnings before interest, tax, depreciation and amortisation of $A42 million on revenue of $A170 million in the year ended June 30. The New Zealand arm contributed 22% or $A9.3 million in earnings on sales of $A19.8 million.
APN plans to raise $A273 million through an institutional placement and renounceable entitlement offer to pay for the acquisition, selling shares at a discounted $A2.45 price. However, the New Zealand business, which has 150 digital screens and another 70 planned for the financial year, could get bought by NZME under an option included in the media company’s demerger from APN earlier this year.
“NZME will consider this option following the announcement from APN regarding the buy-out of Adshel, but has no announcement to make at this time,” chief executive Michael Boggs says.
- Read the full NBR story here
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