APN still plans to deliver annual results on Thursday, despite turmoil which has seen the resignation of chief executive Brett Chenoweth, chairman Peter Hunt and three independent directors.
Ostensibly the changes – which began with a suspension of stockmarket trading on Friday – are about how additional funds should be raised. By that time, more may also be clear.
Resignations of Chenoweth, Hunt, Melinda Conrad, John Harvey and John Maasland took effect this morning. Independent director Kevin Luscombe is also due to retire in April.
In an email to staff last Chenoweth described APN News & Media as “a fantastic company'' with some of the best and most talented people he had worked with. He explained that his views on the need to raise capital were “irreconcilable” with those of major shareholders.
APN, which owns radio stations and newspapers in Australia and New Zealand – including the New Zealand Herald and regional papers from Mackay to Coffs Harbour – is part-owned by Irish-based Independent News and Media.
Preparation for the capital raising – supported by all directors – had been underway for a while, although timing and final decision to proceed had not been agreed, the company says. "While the board agreed the company needed to reduce its debt, it was unable to agree on the methodology,” it said.
The departing directors thought the capital raising should be undertaken when the full year results were announced on Thursday, but other directors the option should be considered while others were explored.
INM and its major shareholder, together with Allan Gray – accounting for about 51 per cent of shares – have said they are opposed to the raising.
INM asked on Friday for an extraordinary general meeting to remove six directors including Hunt and Chenowith and establish a new board, consisting initially of two INM representatives, Vincent Crowley and Paul Connolly, as well as Peter Cosgrove and deputy chairman Ted Harris.
While the company has been looking at ways to cut costs and make its publishing business more efficient – with former Fairfax Media chief executive Brian McCarthy called in to advise, it is thought the board spill may lead to a break up of the business.
Analyst Samantha Carleton of Credit Suisse was quoted by B&T saying APN’s outdoor advertising business would fetch “between $100-200 million and the radio interests between $150-300 million. No value was quoted for the digital or print businesses.
Late today, the board had named Buspak founder Peter Cosgrove as its chairman with INM chief executive, with INM chief executive Crowley and McCarthy among those talked of as possible replacement for Chenowith.
• In common with some other media, our earlier story wrongly described Peter Cosgrove as the former Australian defence chief, who shares the same name.