Independent News & Media (IN&M) has increased its offer for Australian group APN in response to pressure from some shareholders.
IN&M owns 41.6 per cent of APN and is leading a consortium that has offered to buy out the remainder of the group, which has newspaper, broadcasting and advertising interests across Australia and New Zealand.
IN&M, Providence Equity Partners and the Carlyle Group announced yesterday that they were increasing their offer to 6.20 Australian dollars (€3.82) from the A$6.10 announced in February.
The consortium said in a statement issued to the Australian stock exchange in Sydney yesterday that its increased offer took account of feedback from investors.
APN's board backed the previous offer and pointed out that, in light of the fact that IN&M would be unwilling to sell its interest to another bidder, the company was unlikely to attract another bid. But a number of shareholders queried the value, and Deloitte Corporate Finance was appointed to review independently the original offer.
The board's statement said yesterday that Deloitte "has determined that the scheme is fair and reasonable and in the best interest of APN shareholders".
The new offer values APN's 479 million issued shares at A$3 billion, about A$50 million more than the offer announced in February.
If the deal goes ahead, IN&M will hold 35 per cent of the consortium that owns APN. It will also receive a payment of more than €400 million. Providence will have 37.5 per cent and Carlyle will control the remaining 27.5 per cent.
However, IN&M will have 39.3 per cent of the voting rights.
