APN News and Media Limited
(ASX:APN) has revealed it will undertake a capital raising to pay for its $246.5 million acquisition of the remaining interest in two radio networks.
The media company will purchase the remaining stakes in the Australian Radio Network (ARN) and The Radio Network (TRN) from Clear Channel Communications.
APN says the purchase will provide greater flexibility to pursue new revenue generating opportunities through collaboration between its Australian and New Zealand media businesses.
The company plans to fund the purchase through a $132 million non-renounceable entitlement offer, proceeds from its APN Outdoor sale and debt from existing facilities.
APN has also today reported its annual profit rose 101 per cent to $2.6 million, rebounding from a loss of more than $500 million the year before.
CEO Michael Miller says the results are the company’s best in a number of years and reflect growth in its radio businesses, a record result at Adshel and a better performance from its publishing businesses.
