APN shareholders back News Corp deal

APN News & Media shareholders have supported the planned $36.6m sale of regional newspapers to News Corp.

APN’s Peter Cosgrove. Pic: Hollie Adams

APN News & Media shareholders have backed the planned $36.6 million sale of its Australian Regional Media unit to News Corp.

The poll revealed a near unanimous 99.94 per cent approval from investors.

The deal, announced in June, will see regional newspapers like the Ballina Shire Advocate and Toowoomba’s The Chronicle fall into the hands of News, publisher of The Australian.

In all, the agreement will shift ownership of 12 regional dailies and 60 community mastheads.

APN shareholders were required to vote on the deal given it was deemed a related-party transaction, as News owns 14.99 per cent of APN (APN).

Any transaction of a significant asset to a substantial shareholder requires the approval of investors under Australian listing rules.

“In recommending the proposed transaction to APN shareholders, the APN board conducted a robust sale process, involving a number of interested parties, including existing media operators and private equity funds,” APN chairman Peter Cosgrove told shareholders ahead of the vote.

“APN received and reviewed a number of final bids before entering into binding transaction documentation with News Corp.

“APN assessed the News Corp bid as offering a superior combination of price, ability to execute the share sale agreement in a timely and efficient manner and certainty of funding, compared to other offers received by APN.”

The deal was declared “fair and reasonable” by independent expert Deloitte last month.

News of the positive vote aided APN’s share price, which rose 2.1 per cent to $3.45 at 10.55am (AEST).