APN News & Media is entering discussions with Quandrant Private Equity to sell its remaining interest in APN Outdoor for $69m.

APN Outdoor offers digital and static roadside billboards, transit, rail and airport advertising

APN says the transaction will assist in streamlining the remaining APN business and provide more flexibility around its existing assets as opportunities arise. It adds that the $69m represents 7.5 times the business’ 2013 EBITDA. While the company reports that the parties have agreed in principle to many of the terms of the proposed transaction, it remains incomplete – with long form legal documentation still being prepared and negotiated. Michael Miller, CEO of APN, says the proposed transaction will provide a good outcome for shareholders and is in line with APN’s strategy of keeping flexibility around debt repayment, investing for growth and future dividends. He says, “Quandrant has been a strong and supportive partner of APN Outdoor for the past 18 months and the business is well placed as the large format market adapts to the opportunities of digital media. “APN is continuing as an active investor in the Australian outdoor advertising market through our 50 per cent interest in Adshel, reflecting our belief that small format will continue to be a strong segment in the outdoor market.” APN will also continue its exposure in Asia with its 50 per cent interest in Hong Kong Outdoor. Any agreed transaction for APN Outdoor will need to pass the Foreign Investment Review Board and Quandrant’s debt funding arrangements before going ahead. The outdoor media business currently controls more than 50,000 panels in Australia and New Zealand, including digital and static roadside billboards, transit, rail and airport advertising.

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