APN shares rally with news of outdoor sign business sale

APN News & Media plans to sell its remaining interest in outdoor advertising group APN Outdoor for $69 million.

The announcement of the sale to private equity firm Quadrant sent APN shares up more than 5% to 50 cents.

 The multi-media company, which owns newspapers and websites in Australia and New Zealand, including the New Zealand Herald, said in a statement it had signed long form legal documentation for the deal.

"However, the transaction remains conditional upon a number of approvals, including FIRB [Foreign Investment Review Board] approval, and is expected to occur in late January 2014," a statement said.

The deal is not expected to face opposition or restrictions from FIRB, the Australian reported.

The deal will allow APN to continue to pay down its debt.

Two private equity firms will now dominate the large-format roadside billboard market in Australia: Champ Private Equity's oOh!media and Quadrant.

APN sold a controlling interest in APN Outdoor to Quadrant last year for $174.2m.

APN is the owner of this website.