Independent News & Media may sell APN stake

Posted by Leah McBride Mensching on October 31, 2008 at 6:16 PM

Independent News & Media is discussing whether to sell its 39.1 percent stake in Australasian newspaper and radio group APN News & Media Ltd., a move that would ease its debt load by about €800 million, The Irish Times reported Friday.

INM stated several groups have made their interest known, “adding that it intended to sell,” The Irish Times reported. INM publishes the Irish Independent and Sunday Independent. News that the publisher was considering the sale caused its shares to rise by 28 percent in Dublin to €0.64 at 2:50 p.m.

“The INM Board believes that the significant proceeds receivable from monetizing its shareholding in APN would substantially enhance INM's balance sheet and would be earnings neutral for 2009,” INM said in a statement, according to The Irish Times. “(APN's) strategic value has not been fairly reflected in INM's share price, due primarily to the fact that INM doesn't fully control APN's cash flows ... We believe that the recent easing of interest rates across our markets, with the increased probability of further rate reductions, will assist in halting the current economic weakness and may lead to some growth towards the second half of 2009.”

Gavin O'Reilly is INM's chief operating officer and also serves as president of the World Association of Newspapers' executive committee and board.