APN's troubles deepen as INM rejects raising
The six directors, led by the chairman, Peter Hunt, are expected to decide their future this week.
The embattled media group went into a trading halt on Friday after reports emerged that APN's largest shareholder, Independent News & Media, and its billionaire backer Denis O'Brien, had "lost confidence" in APN chief executive Brett Chenoweth, who was proposing a capital raising to pay down debt.
APN said the non-INM directors on APN's board unanimously supported Mr Chenoweth as chief and the plans to reportedly raise $100 million.
The financially challenged INM is not expected to be in a position to participate in the raising and would face a significant dilution of its stake in APN, according to a report in Britain's Sunday Times.
Allan Gray, which owns 19.8 per cent of APN, has sided with INM and the two parties have formally requested an extraordinary general meeting to remove Mr Chenoweth as CEO and spill the board. This is expected to result in the removal of the independent directors.
The board reconvenes this morning and needs to sign APN's financial accounts before announcing its financial results on Thursday.
Frequently Asked Questions about this Article…
APN News & Media was placed in a trading halt after reports said its largest shareholder, Independent News & Media (INM), and INM’s backer Denis O’Brien had “lost confidence” in APN CEO Brett Chenoweth. The reports related to opposition to a proposed capital raising to pay down the group’s debt.
APN was reportedly planning a roughly $100 million capital raising to pay down debt. It became controversial because INM and others were said to have lost confidence in the CEO’s plan, and INM — which is financially challenged — was unlikely to participate and would face significant dilution of its stake.
According to the report, the non-INM directors on APN’s board unanimously supported CEO Brett Chenoweth and the plans to raise about $100 million to reduce the company’s debt.
INM, APN’s largest shareholder, and its billionaire backer Denis O’Brien were reported to have lost confidence in CEO Brett Chenoweth and opposed the proposed capital raising, contributing to the shareholder conflict that prompted the trading halt.
Allan Gray, which owns 19.8% of APN, sided with INM. Allan Gray and INM formally requested an extraordinary general meeting (EGM) to remove CEO Brett Chenoweth and spill the board.
If the EGM goes ahead as requested by INM and Allan Gray, it is expected to seek the removal of CEO Brett Chenoweth and a spill of the board — a move that would likely lead to the removal of APN’s independent directors.
The APN board was due to reconvene to sign the company’s financial accounts before announcing financial results on Thursday, a step the board needs to complete before releasing the results.
Watch for the board’s decisions this week (including whether directors step down), any confirmation of the requested EGM and its timing, announcements about the proposed $100 million capital raising, and APN’s upcoming financial results. These events will affect shareholder control, potential dilution, and clarity on the company’s debt position.
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