Clear Channel Sells Stake In Australian Radio Network, The Radio Network/New Zealand
February 19, 2014 at 3:51 AM (PT)
APN NEWS AND MEDIA is buying out CLEAR CHANNEL's 50% stake in its AUSTRALIAN RADIO NETWORK and NEW ZEALAND's THE RADIO NETWORK for A$246.5 million (US$222.5 million).
The buyout, which comes with a 10-year deal for APN to operate the iHEARTRADIO digital platform in AUSTRALIA and NEW ZEALAND comes as APN rebounds from a 2012 loss of A$507.4 million to A$2.6 million profitability in 2013. APN will fund the deal with an A$132 million raising of capital in a 5-for-9 pro rata non-renounceable entitlement offer, A$61 million in debt from its existing credit facilities, and A$60 million from the sale of its outdoor advertising operations. Among the backers of the buyout are Irish radio station owner DENIS O'BRIEN's BAYCLIFFE and ALLAN GRAY AUSTRALIA.