Independent plans Australasian growth

Independent News & Media, owner of The Independent and The Independent on Sunday, has restructured its Australasian operations in a deal that provides the platform for further acquisitions in the region.

The deal sees the Australian APN News & Media group, which is 40 per cent owned by Independent News & Media, buy out Independent's wholly owned New Zealand business Wilson & Horton.

Under the terms of the 690m euros (£427m) deal Independent News & Media emerges with a 45 per cent stake in the enlarged group, which will become Australia's fifth-largest media company with an expected market capitalisation of about A$1.5bn (£520m).

James Parkinson, finance director of Independent News & Media, said the deal would help to reduce group debt by about 220m euros to 1.2bn euros.

He said the deal would give rise to some cost savings when the Australian and New Zealand enterprises were merged. In addition, he said, the deal would strengthen APN's balance sheet and enable it to "look at further opportunities" in the region. There has been speculation that APN has been considering a takeover bid for the Sydney-based John Fairfax Holdings.