(From RadioToday.com.au)
APN News & Media confirmed on Thursday that it will pay US$222 million (A$246.5 million) to acquire the 50 percent of the Australian Radio Network (ARN), and The Radio Network (TRN) presently owned by the US giant Clear Channel.
The consideration values the radio business at US$433 million (A$493 million), at a multiple of 6.9x EBITDA.
The acquisition will be funded through existing debt facilities, a capital raising of around US$117 million (A$130 million) and the sale of APN Outdoor.
In a statement, APN said:
APN News & Media today announced that it will acquire full ownership of Australian Radio Network Pty Limited (‘ARN’) and The Radio Network Limited (‘TRN’) from US joint venture partner Clear Channel Communications Inc (‘Clear Channel’) for $246.5 million (the ‘Acquisition’).
As a result of the acquisition, APN will own 100 percent of the largest network of radio stations in Australia and New Zealand.
ARN owns or has investments in 12 radio stations in Sydney, Melbourne, Brisbane, Adelaide, Canberra and Perth. It broadcasts to over four million listeners each week. TRN operates seven core radio brands across New Zealand and broadcasts to approximately 1.7 million listeners each week.
APN CEO Michael Miller commented:
“ARN and TRN are businesses that we know extremely well, having run them for almost twenty years. They are managed by highly competent teams and continue to deliver growth in both audience numbers and advertising revenues.
We are confident that radio will continue to grow as a medium and that ARN and TRN will continue to capture a greater share of the market.”
In the radio division, there are a number of major radio stations in Australia:
KIIS and WSFM Sydney, Mix and Gold FM Melbourne, Mix and Cruise Adelaide, 4KQ Brisbane and The Edge Western Sydney
Additionally, ARN has 50% ownership of the following Australian stations:
Nova Perth (joint venture with dmg), 97.3 Brisbane (joint venture with dmg), 104.7 and Mix Canberra (joint venture with SCA).
TRN in New Zealand operates 7 radio brands:
NewsTalkZB, ZM, Classic Hits, Hauraki, Radio Sport, Coast, Flava.