News Corp Australia has confirmed that it has entered into an agreement to purchase the APN’s Australian regional newspapers for $AUD36.6 million.
The agreement is subject to regulatory and APN shareholder approval.
News Corp Australia executive chairman, Michael Miller, said the 12 daily newspapers and 60 smaller publications in APN’s Australian Regional Media (ARM) portfolio reach 1.6 million people across print, online and mobile and represent longstanding and successful relationships with communities in Queensland and northern New South Wales.
“We look forward to working with the ARM team to secure the purchase of these strong newspaper brands in the growing regional centres in Queensland where we currently don’t have a presence,” Miller said.
The proposed purchase includes the (ARM) printing facilities and should lead to significant cost and efficiency synergies through consolidation of production and distribution operations.
According to APN public filings in Calendar Year 2015, the Australian Regional Media group generated revenues of $AUD188.5 million and EBITDA of $AUD18.4 million in accordance with IFRS.