The possibility of a second deal linking Independent News & Media (IN&M) with its new US investor Clear Channel Communications opened up yesterday after IN&M's Australian subsidiary APN signalled an interest in taking full ownership of assets it shares with the US firm.
IN&M owns 38.3 per cent of APN, itself an equal shareholder with Clear Channel in radio groups Australian Radio Network and TRN in New Zealand and Adshel outdoor advertising in Australia.
APN chief Brendan Hopkins said the company would consider buying full ownership of these assets if they came on the market after the proposed takeover of Clear Channel by private equity groups Bain Capital and Thomas H Lee Partners.
Clear Channel took a 4.7 per cent stake in IN&M last month in an all-share deal in which IN&M bought out the 50 per cent stake in African outdoor advertiser Clear Channel Independent that it did not already own.
IN&M's share price valued the deal at €87 million. The manoeuvre had the effect of putting IN&M shares in the hands of an investor perceived to be "friendly" with IN&M chief Sir Anthony O'Reilly as his rival Denis O'Brien takes his stake in the business towards 20 per cent.
APN yesterday reported a 6 per cent rise in annual earnings before interest tax depreciation and amortisation to $361 million Australian (€225.92 million). Net profit after non-recurring items rose 5 per cent to A$167.4 million and revenues rose 4 per cent to A$1.31 billion.
As APN said profit growth will revive this year following its lowest increase since 2001, Mr Hopkins said the company would be "very interested" in taking full control of the radio and outdoor advertising interests it shares with Clear Channel.
It is believed Clear Channel may move to sell these assets if its $19.5 billion (€13.24 billion) takeover by Bain and Thomas H Lee goes ahead. While the deal has regulatory approval, there is some doubt about the ability of the buyers to raise finance for the transaction.
Australian media reports say Mr Hopkins told a conference call that APN had a right of first refusal over the joint venture stakes it shares with Clear Channel. "If that transaction came to us we would obviously have to be very interested in it," Mr Hopkins said. Such a deal "would be quite a sizeable transaction", he said.
