APN seeks approval to sell NZ magazine titles to Germany's Bauer Media

Friday 1st November 2013

APN News & Media, which publishes the New Zealand Herald newspaper, is seeking competition authorities' clearance to sell its New Zealand Magazines business to German rival Bauer Media Group for an undisclosed sum.

APN plans to sell magazines including the New Zealand Woman's Weekly, The Listener, Simply You, Simply You Living and Crème to Bauer, the Sydney-based company said in a statement to the New Zealand stock exchange. The company, which has sought Commerce Commission clearance, didn't disclose a sale price.

Hamburg-based Bauer already publishes 20 magazines in New Zealand, including Woman's Day, The Australian Women's Weekly, Next, Taste, Metro and North & South. In September last year, Bauer spent an estimated A$644 million on the Australasian assets of magazine publisher ACP Media.

APN will continue to publish New Idea, That's Life and Girlfriend magazines under licence from Pacific Magazines Group Australia, which are not included in the sale, the company said.

APN has been selling assets and clamping down on costs as it looks to return to profitability and reduce debt, while operating in a sector where revenues are dwindling as customers baulk at paying for news. The sale of the magazine portfolio reflects APN's strategy to focus on growth assets, particularly digital, the company said today.

Separately, APN said it will appoint New Zealand advertising executive Peter Cullinane as a non-executive director. Cullinane has formerly held senior global executive roles with Saatchi & Saatchi and is currently a partner of marketing and communications company Assignment Group, and a director of STW Communications Group and SkyCity Entertainment Group.

Shares in APN last traded at 56 cents, and have advanced 75 percent this year.

BusinessDesk.co.nz

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