Murdoch picks up APN shares

Rupert Murdoch's News Corp has taken a 14.99 per cent stake in APN. Photo / AP

Rupert Murdoch's News Corp has picked up a 14.99 per cent stake in ASX-listed media company APN after Ireland's INM and INM's biggest shareholder, Denis O'Brien, sold a collective 30.8 per cent stake in the company, which publishes the New Zealand Herald through the newly formed unit NZME.

In a statement released in New York, News Corp said the purchase was subject to regulatory approval. A source close to the transaction said News Corp bought its stake at A88c - 6.4 per cent discount to Wednesday's closing price of A94c.

"APN has a high-quality portfolio of Australian and New Zealand radio and outdoor media assets and small regional print interests," a News Corp statement said. "It is led by a quality management team that has successfully driven improvements in the performance of the business."

The remainder of the stake is being marketed to New Zealand, Australian and Asian institutional investors, through investment bank CS First Boston.

News Corp's many titles include the Wall Street Journal, the London Times and the Australian.

APN is a leading regional publisher in Australia.

In New Zealand it publishes the New Zealand Herald, nzherald.co.nz and other regional newspapers. Its assets also include the GrabOne transactional business and its NZME. radio stable includes NewstalkZB and Radio Hauraki.

The sale effectively unwinds the last of INM's Southern Hemisphere investments instigated under Sir Anthony O'Reilly's control, with INM having sold its substantial South African media assets in 2013.

In 2013, INM struck a debt-for-equity deal with its bankers after reporting a loss in 2012 of 254.9 million ($368 million). Among the conditions was repayment of debt through asset sales.

In Wednesday's transaction, INM sold 191.5 million APN shares and O'Brien's private investment vehicle, Baycliffe Holdings, sold 125.8 million shares.

Australian funds management company Allan Gray this month said it had reduced its holding in APN from 17.7 per cent. The ASX-listed shares have climbed 52 per cent in the past 12 months.

Last month APN put off the public share float for its Kiwi business, NZME.