APN News & Media shares have jumped more than 30 per cent after trading resumed following a $112 million capital raising to take full control of its radio businesses.
The dual listed stock surged 33.07 per cent, or 13.61 cents, to 54.75 cents on the ASX at 1436 AEDT shortly after it resumed trading.
The Sydney-based company raised $112 million from institutions, with about 98 per cent of those eligible investors taking up their entitlement.
A further $20 million will be raised from existing retail investors when the offer opens on February 27.
The capital raising will go towards buying out APN’s US partner Clear Channel’s stake in Australian Radio Network and The Radio Network in New Zealand for $A246.5 million.
The rest will come from $A60 million reaped from the sale of its outdoor advertising business and $A61 million in existing bank debt.
APN has been restructuring its business over the past year, quitting assets including its stake in an outdoor advertising venture, its unprofitable brandsExclusive online shopping site and a suite of New Zealand magazines.
APN made a $2.6 million profit in 2013, a turnaround from a $507 million loss in 2012 that included impairments on the value of its publishing assets.
Chief executive Michael Miller said APN’s performance was its best in years, with strong earnings growth in radio, a record result in its advertising business Adshel, plus the benefits from the sale of several businesses.
