Murdoch investment won't change APN direction

APN CEO Michael Miller says News Corp's 14.9 per cent investment is not going to change the direction of APN. Photo: Dean Purcell.

The addition of Rupert Murdoch's News Corp to APN's share register will not make a difference to the Australasian media group's direction, chief executive Michael Miller said.

In Australia, the company has beefed up its commercial radio presence and in New Zealand, APN has put it New Zealand assets - including the NZ Herald - under one umbrella - NZME.

NZME plans to "co-locate" the businesses, which include The Radio Network and GrabOne, in one building towards the end of this year.

Miller, who has held a number of senior positions in News Corp before moving to APN two years ago, said he was now "a very distant relative - separated by time and distance now".

News Corp's 14.9 per cent stake was not going to change the direction of APN, Miller told the Herald.

"We have got plans in place and that's what has attracted shareholders - not just News Corp," he said.

Murdoch's New Corp last week declared that it had picked up 14.9 per cent of APN after a block share sale form Ireland's' Independent News Media (INM) and a related party, Baycliffe, having earlier bought just under 5 per cent.

Official disclosures as to who bought the rest of the 30.8 per cent sake put for sale by the Irish investors have have not yet been made, but Australian media said a number of other institutional investors were rumoured to have bought into the company including Perpetual, Colonial First State, Perennial Investment Partners and Regal Funds Management.

Miller said the departure of the Irish removed a "perceived shadow" over the company rather than a real one.

He said the once debt-laden INM and Baycliffe had had not acted as a "handbrake" on APN but that their departure would help add liquidity for the stock.

"If you go back 12 months about 50 per cent of the company was held by three shareholders - Alan Gray and two other shareholders, who were related.

"There was a lack of liquidity in the stock and that was a distraction for some funds who wanted to have a meaningful position in APN," he said.

"By INM and Baycliffe selling out, and by Allan Gray reducing its stake to 15 per cent, you have now got a lot more liquidity in the stock," he said.

Last December, APN was included in the ASX200 index, which will give the company exposure to index-based funds.

APN's dual listed shares last traded in New Zealand at $1.05.