INM stake in APN may be worth €165m
APN’s management told an investor presentation this week, the group is on course to report an operating profit, for the current year, “in line with market expectations”. Those expectations include earnings before interest and tax (EBIT) of somewhere between Aus$180m and Aus$190m and net profit of Aus$90m to Aus$95m.
“Based on the current exchange rate, INM’s stake in APN equates to $272m. Post the restructuring plan, INM shares outstanding will be of the order of 3.5 billion (up from around 840 million in June).
“Post rights market capitalisation, based on a share price of 14.5c would be around €508m, of which the current APN value would account for 54%.
“With 52% of our INM forecast 2010 operating profit anticipated to derive from Australia, it would suggest alignment of both stocks.
“Such a valuation marker is small comfort for shareholders in INM however, who have experienced significant value destruction such has been the level of dilution associated with the management restructuring plan,” said Goodbody Stockbroker’s Gerry Hennigan.
Meanwhile, industry sources have poured cold water on speculation about the potential of German media giant Axel Springer building up a significant stake in INM through the acquisition of shares from the Irish group’s former bondholders.
The latter group are set to receive a 46% stake in INM in a debt-for-equity element of the overall restructuring of a €200m bond. Springer’s chief financial officer/chief operating officer, Lothar Lanz was appointed as a non-executive director of INM earlier this week.
It has been rumoured that Tony O’Reilly sought Mr Lanz’s appointment as a way to promote the possibility of Springer building a stake in INM and reducing Denis O’Brien’s shareholding.
However, one source said yesterday it was too early to judge ifr the new appointment means anything beyond its announcement.
CONNECT WITH US TODAY
Be the first to know the latest news and updates
