News: FXJ APN News & Media proposes to demerge its New Zealand business

May 11 (Reuters) - APN News & Media Ltd (APN) :

• Proposed demerger of nzme (APN)
• Eligible APN shareholders will receive one share in nzme for each existing APN share
• Says APN to raise approximately $180 million through a fully underwritten 1 for 3 accelerated renounceable entitlement offer
• APN board intends to initially target a dividend payout ratio of 40%-60% of underlying npat following the demerger
• APN and Fairfax Media separately announced entry into exclusive discussions regarding potential merger of respective New Zealand businesses
• One-off cash transaction costs associated with the demerger are expected to be approximately $8.3 million on a pre-tax basis