APN News & Media has sold half of APN Outdoor in a move that will bring the company $190 million, amidst a 24% drop in profit.
The company has entered a joint venture with Quadrant Private Equity, which will see the group selling half its outdoor businesses in Australia and New Zealand. The deal values APN Outdoor at $272 million in total.
The move was announced shortly after APN's non-executive director Pierce Cody resigned from his position. He said, “I have found it necessary to resign due to unresolved concerns I have had with some ongoing areas of corporate governance.”
The joint venture will retain the name APN Outdoor, with APN chief executive Brett Chenoweth named chairman of the company.
APN's 50% ownership in AdShel, as well as outdoor operations in Hong Kong, remain outside the deal.
Meanwhile, APN News & Media has recorded a 24% drop in net profit after tax for 2011, from $103.1 million down to $78.2 million.
The company's Australian Regional Media division saw a 5% drop in revenue, while New Zealand Media also saw a 5% decline.
However, APN's outdoor ventures saw a 10% lift in revenue for the period.
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