Applicant
Independent News & Media Plc
Case number(s)
200710045
Decision date
Type
Decision
Decision number200710045
Application number200710025
Date27 April 2007
Offeror/applicantIndependent News & Media Plc, P6 Normandy Lux l S.a.r.l and CA Normandy Lux l S.a.r.l
Ultimate applicant beneficial ownership37.5 percent - United States of America, Providence Equity Partners VI International L.P.
35 percent - Ireland, Independent News & Media Plc
27.5 percent - United States of America, Carlyle Asia Partners II L.P. and CAP Co-Investment L.P.
Beneficial overseas ownership 
- Asset currentN/A
- Asset proposedN/A
- Share current100 percent
- Share proposed100 percent
Offeree(s)/seller(s)Australian Public of Australia
Business activitiesCommunication Services - Other
Details of land involved11.19 hectares of freehold situated at Lower Styx Road, Christchurch being CT CB21K/1486 (Canterbury Registry).
Regions involvedCanterbury Various
Total considerationCONFIDENTIAL
Consent soughtTo acquire up to 100 percent of the shares of APN News & Media Limited.
Rationale

The application has been approved as it met the criteria.

The Overseas Investment Office is satisfied that the individuals with control of the Applicant collectively have business experience and acumen relevant to the overseas investment, and that the Applicant has demonstrated financial commitment towards the overseas investment. The Overseas Investment Office is further satisfied that each individual that exercises control over the Applicant is of good character and is not an individual of the kind referred to in section 7(1) of the Immigration Act 1987.

INM currently holds approximately 41.62 percent of the shares in APN News & Media Limited (APN) (28.58 percent through an Australian subsidiary Independent News & Media (Australia) Limited (INMAL) and 13.04 percent through News & Media NZ Limited (NMNZ)).

The Applicant is a consortium comprising INM, Providence and Carlyle and their associated body corporates and investment funds formed for the purpose of acquiring all of the shares in APN that INM currently does not own. The consortium proposes to give effect to the transaction by:

  1. acquiring 100 percent of the shares in Independent News & Media Holdings Limited (INMH) (which owns 100 percent of the shares in INMAL) as a result of which the consortium will effectively acquire INMAL and its interest in APN; and
  2. INMAL entering into an Australian-law governed scheme of arrangement pursuant to which INMAL will acquire 100 percent of the share capital of APN.

APN is an Australian company that has a number of New Zealand subsidiaries. APN's major New Zealand businesses include the New Zealand Herald newspaper, The Radio Network (which includes radio stations such as Newstalk ZB, Classic Hits and Radio Sport), the New Zealand Listener, Search 4 Jobs online and a number of other regional media publications.

The Consortium members believe that by combining their resources and expertise they will be able to grow and develop the APN business in Australia and in New Zealand over the long-term. By joining with Providence and Carlyle in the Consortium, INM will be able to maintain its investment in APN and APN's New Zealand businesses whilst freeing additional financial resources which can be used for the expansion of the INM Group and thereby to increase returns for INM shareholders.

The proposal is likely to result in the following benefits:

  1. increased efficiencies to APN's business operations.
ContactPip England/ Sarah Twigg
Chapman Tripp
P O Box 2206
AUCKLAND 1140