Deal: APN News & Media will demerge its New Zealand business NZME and conduct a capital raising to support the proposal

Value: $180 million

Area: Banking and finance

Key players: Baker & McKenzie partner David Holland lead the transaction while Lauren Magraith lead the capital raising. They were assisted by tax partners Amrit MacIntyre and John Walker, partner Adrian Lawrence, 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. 

Deal significance:

If the demerger goes through, NZME will have a primary listing on the NZX and a secondary listing on the ASX.

The demerger will be put into effect by an equal capital reduction and in-specie distribution of shares in NZME, according to a statement from Baker & McKenzie.

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Eligible APN shareholders will receive one share in NZME for every APN share they hold.

APN will also be pursuing a 1 for 7 share consolidation.

Mr Holland suggested the demerger would allow APN to pursue its Australian growth strategy.

“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,” he said.

The $180 million capital raising will take place through a fully underwritten 1 for 3 accelerated renounceable offer with retail entitlements trading.

This capital will allow APN to retire debt and to facilitate appropriate capital structures for both companies, Ms Magraith said.

“We are pleased to have assisted APN in what has been a very successful offering so far, with over 95 per cent of eligible institutional shareholders taking up their entitlements under the accelerated institutional component of the offer,” she said.