APN top brass bow to pressure and resign

The CEO of Australian media group APN, which counts Independent News and& Media (INM) as its largest shareholder, has bowed to investor pressure and resigned, along with four other directors.

Sydney-headquartered APN announced yesterday that Brett Chenoweth, chairman Peter Hunt, and three independent directors — Melinda Conrad, John Harvey, and John Maasland — will no longer be with the company as of today.

The move follows a show of no confidence in APN’s stewardship by the group’s two biggest shareholders; the Dublin-based INM and South African fund management firm, Allan Gray.

INM — which over the weekend announced it had reached initial agreement over the €170m sale of its non-core South African publishing assets — raised concern over APN’s leadership late last week, calling for an EGM to remove Mr Chenoweth from office.

INM said it had lost confidence in Mr Chenoweth’s ability “to implement the strategic initiatives necessary to reposition APN for the more challenged media landscape that has emerged in Australasia”.

There was also clear opposition — on behalf of APN’s biggest shareholders — over a planned rights issue being launched in order to reduce the group’s $470m (€362m) debt; a move which would have diluted the respective 28.95% and 19% shareholdings held by INM and Allan Gray.

While it seems the need for an immediate EGM has dissipated, the need for debt reduction remains at APN.

It is understood the removal of the four directors has done away with a split over views on how that reduction might be achieved; while the remaining directors are now set to consider other options.

APN said it has begun the process of appointing a search firm to assist in its selection of a new CEO and additional board members.

The group’s annual results are also due to be published on Thursday, with recent guidance from management pointing to a drop in net profits of around 34%.