INM receives approaches for Australasian interests

Independent News & Media (INM), the publishing group which owns The Independent, said yesterday that it has received a number of unsolicited approaches about its stake in the Australasian media company APN.

INM shares jumped 27 per cent to €0.635 on the expectation that, should a deal go ahead, it could cut the group's net debts from €1.4bn to less than €600m.

The media group has owned its 39.1 per cent stake in the Australasian company since 1988, but is actively considering its strategy. "While INM continues to be fully supportive of APN and its management team, it has received unsolicited approaches regarding its stake in APN and believes it is now in the best interest of INM shareholders to consider its strategic options," the company said in a statement to the Stock Exchange yesterday.

INM said that it believes APN's share price does not reflect the real value of the company and its position in the Australian and New Zealand markets. The company also noted that its 39.1 per cent stake means that it does not fully control APN's cash flows. "As a result, the board has formally informed APN of its intention to explore opportunities to monetise its significant shareholding," says the statement.

The group's share price rise also reflected the City's response to INM's interim management statement, published alongside the announcement over APN. While the outlook for the remainder of 2008 remains challenging, in line with the global media sector as a whole, early indications for 2009 outstripped analyst expectations. Interest rate reductions in several of the group's key markets could even lead to growth towards the second half of the year.

"Assuming that the economic outlook and conditions for advertising in our markets do not deteriorate any further – and we believe this is a reasonable assumption at this stage – we are currently forecasting constant currency revenues for 2009 should be only marginally down on 2008," the statement says.